Google to reap $2bn in share sale
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Google on Wednesday revealed plans to add another $2bn to its coffers through a further share sale, a move that would take its reserves of cash and marketable securities to more than $10bn.
The internet search company said the sale of 5.3m shares, worth $2.1bn at Wednesday’s closing price, was intended partly to meet extra demand from index funds created by the announcement last week that the company would be included in the S&P 500 index.
Since then, its shares have overcome their recent relative weakness.
The planned stock sale prompted a 2.2 per cent drop in the share price to $386.43.
The stock sale would be the company’s second in recent months and would boost its liquid resources as it steps up investment in its technology infrastructure and prepares for potentially punishing competition with Microsoft.
A follow-on stock sale of more than $4bn last
year effectively doubled its cash holdings and led to speculation that it could embark on a round of acquisitions.
Since then it has agreed to invest $1bn for a 5 per cent stake in AOL, a deal that was finalised on Wednesday.
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