Google Expects to Raise $4B in Stock Sale
However, the Mountain View, CA, company said it has "no current agreements or commitments with respect to any material acquisitions."
Google stock fell 1.79 percent on the news yesterday, closing at $279.99. At that price, the offering would raise about $4 billion. Google's stock price was as high as $317 in the past month.
Google already has just under $3 billion in cash and short-term investments on hand, so it is unclear what it needs money for unless it's shopping for a large acquisition. Analysts speculated yesterday that the company is eyeing China's Baidu.com search provider, of which it already owns 2.6 percent. Google officials were mum because the company is in a quiet period related to the offering.
Google earned $399.12 million and had revenue of $3.19 billion last year.
Morgan Stanley, Credit Suisse First Boston and Allen & Co. are the offering's underwriters.