Magazine \ Daily News \ Fender Withdraws Planned IPO

Fender Withdraws Planned IPO

CEO says "economic conditions" are the reason for the move.

New York, NY (July 20, 2012) -- Fender announced today that it is calling off plans to take the company public, citing the global financial market's grim outlook as rationale for the reversal.

"Current market conditions and concerns about economic conditions in Europe do not support completing an initial public offering at what we believe to be an appropriate valuation at this time," said Fender CEO Larry Thomas in a statement to the press.

The initial public offering (IPO) was announced in March and originally intended to raise $200 million. The Los Angeles Times reported in July that Fender expected to sell 10.7 million shares at $13-$15 per share for a potential total of $160 million.

For more information:
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Comments

 (3 comments) display by
UsernameComment
Dheep'
on 07/26/2012 		Amazing. For once, the greed of what were probably only a few did NOT win out. That's very rare thesedays
George
on 07/25/2012 		Fender could have been bought up by foreign investors or some private equity capital firm which would have sold off all the assets and used the name to sell China made products. Fender would be reduced down to a shell, managed by accountants and lawyers, incorporated offshore, that would have used the Fender name as a marketing brand for imported China made products. Once those jobs are gone to China, they would never come back to America.
Donny Danger
on 07/23/2012 		Good... they should stay as a private company... nothing good can come from going public and being forced to kowtow to shareholders expectations on a quarterly basis.



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