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SiliconValley.com: Hot IPO stocks at center of probe

Dec 26, 2000, 18:33 (0 Talkback[s])
(Other stories by Deborah Lohse)

"...It's not clear whether the current SEC inquiries will lead to a full investigation either, but investment banks Credit Suisse First Boston, Goldman Sachs & Co., and Bear Stearns Cos. have confirmed reports in the Wall Street Journal that they're giving authorities information about how they distributed IPO shares. The information includes: tape recordings of conversations between bankers and investors, records of certain large trades in 1999 and 2000 for which bankers got commissions over 10 cents a share, and a list of investors who got shares in certain IPOs."

"We believe that our allocation considerations are consistent with those employed by others in the industry," said a New York spokeswoman for Credit Suisse First Boston in a statement. "We are cooperating fully with the governmental inquiries."

"Morgan Stanley Dean Witter, another investment bank identified by the Wall Street Journal as a probe target, declined to comment."

"In addition, VA Linux, the Sunnyvale software company, confirmed that the SEC has asked it for information related to the underwriting process for its December 1999 IPO, led by Credit Suisse First Boston. That deal soared nearly 700 percent in its first day of trading. "We don't think we're the focus, and we don't think it will affect our business," said VA Linux spokesman Patrick Fossenier."

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