AFL-CIO Wants SEC to Make BG’s IPO DOA

It’s official: Private Equity is the new bad boy.

A major U.S. labor group on Wednesday asked market regulators to force changes to an initial stock offering by Blackstone Group, one of the first major U.S. private equity firms to go public.
The AFL-CIO urged the Securities and Exchange Commission to require that Blackstone register as an investment company and submit to oversight under the same law mutual funds follow.
The labor federation told the SEC in a letter that it believed Blackstone “deliberately structured its public offering … to hide the fact that the Blackstone Group LP is actually an offering of interests in pools of investment securities.”
AFL-CIO Secretary-Treasurer Richard Trumka said in a statement: “That’s unacceptable, and the SEC should step in and enforce the law.”

Posted by on May 16th, 2007 at 12:31 pm


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