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Goldman to delay IPO?
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September 22, 1998: 10:57 p.m. ET
Seeing market turmoil, partners reportedly plan to delay offering till May
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NEW YORK (CNNfn) - Goldman Sachs Group L.P. is planning to delay its long-anticipated IPO due to turmoil in the financial markets, The Times of London reported in Wednesday's editions.
Citing company insiders, the newspaper said a broad consensus exists among partners that an initial public offering doesn't make sense in a marketplace where the value of U.S. banking stocks has declined by 40 percent in recent weeks.
Goldman's 190 partners voted in August to take the company public, ending a 129-year tradition as a private partnership. At the time, the partners said the increased access to capital as a public corporation would enable the firm to compete more vigorously in an increasingly high-stakes financial services industry.
The firm had planned to sell a 10- to 15-percent stake in the market in November. Now, the partners are aiming for next May, The Times said.
Before the market's plunge, the 190 partners in the privately held investment banking firm stood to gain an average of $100 million each from the stock offering. If the IPO went ahead now, their stakes would be worth $60 million each, The Times said.
The newspaper's report came a day after the partnership reported on Tuesday that its streak of record-setting profit growth came to an end in the third quarter. In addition, the firm warned that adverse market conditions will hurt fourth-quarter earnings as well.
Goldman declined on Tuesday to comment on the newspaper's report. 
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Goldman Sachs
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