Red Herring says Google’s secondary offering late Wednesday raised $4.18 billion, cash likely to be used for buying off Baidu, the Chinese Search Engine.


According to Red Herring, Google’s secondary offering late Wednesday raised $4.18 billion, cash likely to be used for rapid expansion and new services.

The 14,159,265 additional shares were priced at $295, 2.7 percent below the stock’s closing price of $303. Google’s stock had risen from about $280 on August 18. Google already had about $3 billion in cash and with the second offering it has raised 4.18 billion.

According to some, it may acquire Chinese search leader Baidu, which lost 28 percent in value on Wednesday, when analysts said it was overvalued. It is now worth around $2.64 billion.

Google holds a 2.6 percent stake in Baidu and Google Search holds the second position in China.

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