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CNET News.com: SEC may be focusing on VA Linux in IPO probe

Dec 12, 2000, 13:32 (0 Talkback[s])
(Other stories by Bloomberg News)

"Federal authorities investigating ways securities firms allocate certain initial public offerings of stock are focusing on VA Linux Systems' offering last year, according to reports."

"Shares of the maker of software and computers using the Linux operating system climbed eight times the offering price on its first day of trading last December. The share sale was underwritten by Credit Suisse First Boston, whose transactions have been an early focus of the federal investigation, The Wall Street Journal said, citing people familiar with the probe."

"The SEC and the U.S. attorney's office in Manhattan have begun a joint investigation into whether some investors paid unusually large commissions for coveted initial public stock offerings, and whether the payments constitute illegal kickbacks."

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