http://www.vonage-forum.com/ftopic14409.html
Before you decide not to pay, you may want to consider this. Someone got this off the DJ wire and posted it to the message boards on finance.yahoo.com:
5:36P (DJ) *WSJ: Vonage Says Customers Obligated On IPO Shares Story 10228 =WSJ: Vonage: Customers Bound By Promises To Buy IPO Shrs By Shawn Young Of THE WALL STREET JOURNAL
As its shares continued to sink following its initial public offering last week, Vonage Holdings Corp. (VG) said it plans to hold investors who promised to buy IPO shares to their pledges.
Some investors have threatened to withhold payment for IPO shares they had promised to buy through an unusual program that allowed Vonage customers to participate in the IPO.
Shares of Vonage, which offers Internet-based phone service, immediately plunged from the $17 IPO price, and they closed Wednesday at $12.02 in 4 p.m. New York Stock Exchange composite trading. Vonage is obligated to pay its underwriters if customers who agreed to buy IPO shares default.
A Vonage spokeswoman said Wednesday the company will pursue payment from customers who renege on their agreements.
"If they don't pay, we will reserve our right to pursue payment," said Brooke Schulz. She added that speculation that the company intends to buy shares back from disappointed investors are false. "They are taking a risk if they choose not to pay," she said.
She declined to comment on how the company might pursue those who refuse to pay or on how many customers have refused to pay. Many customers already have paid and many more intend to, according to postings they have entered on the Web site www.vonage-forum.com
The company, based in Holmdel, N.J., set aside about 4 million shares at the $17 IPO price for customers, and a person familiar with the matter said 9,000 to 10,000 customers signed up to buy shares. The IPO raised about $531 million for Vonage, which is growing rapidly but is not profitable.
Before you decide not to pay, you may want to consider this. Someone got this off the DJ wire and posted it to the message boards on finance.yahoo.com:
5:36P (DJ) *WSJ: Vonage Says Customers Obligated On IPO Shares Story 10228 =WSJ: Vonage: Customers Bound By Promises To Buy IPO Shrs By Shawn Young Of THE WALL STREET JOURNAL
As its shares continued to sink following its initial public offering last week, Vonage Holdings Corp. (VG) said it plans to hold investors who promised to buy IPO shares to their pledges.
Some investors have threatened to withhold payment for IPO shares they had promised to buy through an unusual program that allowed Vonage customers to participate in the IPO.
Shares of Vonage, which offers Internet-based phone service, immediately plunged from the $17 IPO price, and they closed Wednesday at $12.02 in 4 p.m. New York Stock Exchange composite trading. Vonage is obligated to pay its underwriters if customers who agreed to buy IPO shares default.
A Vonage spokeswoman said Wednesday the company will pursue payment from customers who renege on their agreements.
"If they don't pay, we will reserve our right to pursue payment," said Brooke Schulz. She added that speculation that the company intends to buy shares back from disappointed investors are false. "They are taking a risk if they choose not to pay," she said.
She declined to comment on how the company might pursue those who refuse to pay or on how many customers have refused to pay. Many customers already have paid and many more intend to, according to postings they have entered on the Web site www.vonage-forum.com
The company, based in Holmdel, N.J., set aside about 4 million shares at the $17 IPO price for customers, and a person familiar with the matter said 9,000 to 10,000 customers signed up to buy shares. The IPO raised about $531 million for Vonage, which is growing rapidly but is not profitable.
