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Goldman Sachs Likely to Sell Facbook Stake without Notice

Clients of Goldman Sachs Group Inc who are thinking of buying shares in the closely held social networking site, Facebook Inc. should pay attention for Wall Street’s most profitable firm might release its own holdings without any warning.

The firm, in its one-page investment profile that was sent to private wealth clients, said in the last sentence that GS group may further reduce its exposure to investment in Facebook at any time, without letting the fund or investors in the fund know ahead of time.

Facebook’s offering document that was obtained by the Bloomberg News shows that $75 million of the total $350 million invested in Facebook by Goldman Sachs is from the Goldman Sachs Investment Partners. This is a hedge fund that manages client money.

The firm’s $375 million investment might possibly be cut down to $300 million because Goldman Sachs anticipates selling its $75 million shares to third parties or to the fund it made so other clients may buy a stake in Facebook.

According to the offering document’s disclosure section, it said that there may be problems of interest regarding the underlying investments of the fund, as well as Goldman Sachs. However, the materials written in the documents are not guaranteed accurate or complete.

Goldman Sachs spokesman Stephen Cohen refused to comment yesterday, as well as the spokesman for Facebook, Jonathan Thaw.

Clients of Goldman Sachs should make a minimum investment of $2 million by January 7 to get a stake in Facebook. Facebook has already more than 600 million active users every month, and 230 million of that has access to the site through mobile services.

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