Google to Sell 5.3 Million Shares for S&P Index Funds

Bloomberg reports:

Google Inc., the most-used Internet search engine, plans to sell 5.3 million more shares to satisfy demand for the stock as the company joins the Standard & Poor's 500 Index.

The sale would raise more than $2 billion at today's price and would bring to more than $6 billion the total Google has brought in from stock sales in the past year. These new shares primarily will be offered to funds that are based on the S&P 500, Google said today in a regulatory filing.

S&P 500 fund managers will have to buy $7.3 billion of Mountain View, California-based Google's stock because of its inclusion in the index, according to an estimate last week from Citigroup Inc. The stock will become the highest-priced among the index's members, surpassing Goldman Sachs Group Inc.

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