NEW YORK, June 8 (Reuters) – A Chinese company operating a
website for children, which plans to sell shares in an initial
public offering on Wednesday night, has disclosed its auditors
found major gaps in its internal controls.

The admission from Taomee Holdings Limited (TAOM.N: Quote, Profile, Research, Stock Buzz), in its
offering prospectus under the risk factors section, comes at a
time when heightened scrutiny of many U.S.-listed Chinese
companies and the reliability of their accounts has caused
investors to flee their shares.

NEW YORK (Reuters) – Carlyle Group CYL.UL plans to take HCR ManorCare public soon in an offering that could raise roughly $500 million, sources familiar with the matter said.

The initial public offering, which would be the latest of several from private equity owned healthcare companies, could give the nursing home and assisted living facility operator an enterprise value, which includes debt, of up to $2 billion, one of the sources said.

NEW YORK, June 3 (Reuters) – Morgan Stanley (MS.N: Quote, Profile, Research, Stock Buzz) is the
lead underwriter for Groupon’s initial public offering, which
could be good news for short-term investors and bad news for
the online coupon company.

So far this year, the major tech company IPOs on which
Morgan Stanley has been the lead underwriter have surged on
their first day of trading, suggesting that the shares may have
been priced too modestly.

NEW YORK, June 1 (Reuters) – Three academics say that using
a model they have designed, they have determined definitively
that there was a bubble in LinkedIn Corp’s (LNKD.N: Quote, Profile, Research, Stock Buzz) shares
during the first four days of its trading.

The three have devised a model they say can establish in
real time whether prices in a market are doomed to collapse.

NEW YORK (Reuters) – Rolls-Royce Motor Cars is adding dealers in the United States as the economy recovers and demand for ultra-luxury vehicles returns, the company’s chief executive told Reuters in an interview on Wednesday.

Rolls-Royce ultimately expects to have 38 U.S. dealers and is considering several new locations, including one in the San Francisco Bay Area, CEO Torsten Muller-Otvos said.

NEW YORK (Reuters) – Carlyle Group CYL.UL is looking to pick banks to underwrite its planned IPO in the coming month, four sources familiar with the situation said, making it the latest buyout firm to tap the public markets.

Carlyle, which is gearing up to join publicly traded rivals Blackstone Group (BX.N: Quote, Profile, Research, Stock Buzz), Kohlberg Kravis Roberts & Co (KKR.N: Quote, Profile, Research, Stock Buzz) and Apollo Global Management (APO.N: Quote, Profile, Research, Stock Buzz), hopes to file its IPO prospectus with the U.S. Securities and Exchange Commission in the third quarter, two of those sources said.

NEW YORK/SAN FRANCISCO, May 27 (Reuters) – Shares of
biofuel maker Solazyme Inc (SZYM.O: Quote, Profile, Research, Stock Buzz) rose 15 percent in their
stock market debut on Friday after the company’s IPO raised
more than expected.

South San Francisco-based Solazyme uses algae to make oil
and plans to sell fuel oil, dietary supplements and skin care
products. It is the latest of a handful of companies that make
fossil fuel alternatives and have sought money successfully
from the U.S. capital markets.

NEW YORK (Reuters) – Shares of private equity-owned chipmaker Freescale Semiconductor Holdings (FSL.N: Quote, Profile, Research, Stock Buzz) rose in their stock market debut on Thursday, but analysts expressed concern over the company’s large debt load.

The shares rose 5.3 percent above their initial public offering price to $18.95 in mid-day trading on the New York Stock Exchange. The rise came after the company scaled back expectations for its IPO and raised 22 percent less money than anticipated.

NEW YORK (Reuters) – Shares of American International Group Inc fell 3.6 percent on Wednesday after the insurer and the U.S. Treasury sold $8.7 billion worth of AIG stock.

The Treasury sold 200 million shares, reducing its stake in the company to 77 percent from 92 percent, but it still has 1.5 billion shares left to sell to fully exit its investment.

NEW YORK/WASHINGTON (Reuters) – The U.S. Treasury is barely breaking even on its investment in beleaguered insurance giant American International Group Inc, according to an early litmus test of market interest in the firm’s stock.

The Treasury sold 200 million shares of AIG at $29 per share, a slight discount from their closing price and not far above the $28.73 average price the Treasury will need to recoup its full investment in the company.