Facebook Said to Have Talked With NYSE About Exchange Switch
NYSE Euronext and Facebook Inc. (FB) have exchanged phone calls and e-mails about the possibility of the company switching its listing from Nasdaq OMX Group Inc. (NDAQ), according to a person familiar with the matter.
Facebook, which listed on the Nasdaq Stock Market on May 18 after completing the world’s biggest initial public offering by a technology company, is listening to the New York Stock Exchange, said the person, who asked not to be named because the discussions are private.
Nasdaq’s systems were overwhelmed by order updates and cancellations before Facebook shares began changing hands, delaying the start of trading and preventing the exchange from immediately telling investors whether transactions went through. The social network’s stock has retreated 16 percent since the May 17 IPO, which priced the shares at $38 and raised $16 billion for Facebook and existing stockholders.
Larry Yu, a spokesman for Menlo Park, California-based Facebook, didn’t respond to a request for comment. Nasdaq’s Robert Madden declined to comment.
“There have been no discussions with Facebook regarding switching their listing in light of the events of the last week, nor do we think a discussion along those lines would be appropriate at this time,” Robert Rendine, an NYSE Euronext (NYX) spokesman, said in an e-mail.
In a ‘Loop’
Nasdaq and Facebook ran into trouble when computer systems used to set the opening price were put into a “loop” because investors kept updating and canceling orders, Nasdaq Chief Executive Officer Robert Greifeld said in a call with reporters on May 20. Greifeld said a “poor design” caused the issue.
Nasdaq, the second-biggest operator of U.S. stock exchanges, lists eight of the 10 biggest U.S. technology companies by market value, including Apple Inc. and Microsoft Corp., the two largest, as well as Google Inc., Intel Corp. and Facebook. The New York Stock Exchange is the home venue for International Business Machines Corp., ranked third.
Menlo Park, California-based Facebook announced it chose to list on Nasdaq in an April 23 filing with the U.S. Securities and Exchange Commission.
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