| SAN FRANCISCO
SAN FRANCISCO Jan 24 Facebook, the social
networking company poised to go public this year, will not honor
trades of its shares in the secondary markets for a three-day
period beginning on Wednesday, according to a person familiar
with the matter.
Lawyers representing Facebook sent a letter last week to at
least one of the special markets where private company shares
are traded informing them of the move, the source said. The
letter, from the law firm Fenwick & West, did not provide a
reason for temporarily halting private transactions of Facebook
The suspension, which runs from Wednesday to Friday, comes
as anticipation is building for Facebook to sell shares to the
public later this year.
The fact that Facebook will not honor secondary market
trades in its shares for three days does not necessarily mean
the company is getting closer to filing a prospectus for an
Facebook officials declined to comment. News of the
suspension in honoring Facebook trades was first reported by
Bloomberg News on Tuesday.
Shares of Facebook, the world's largest Internet social
networking company with more than 800 million users, recently
traded at $34 a share on SharesPost, according to information
posted on the website. That gives Facebook an implied valuation
of $80 billion, according to SharesPost.
(Reporting By Alexei Oreskovic; Editing by Matt Driskill)