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Updated: 11/9/2009 4:03 PM					Sponsored by:
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Fortress shares slide after offering is priced

By Associated Press
May 15, 2009 | Comments (0)

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Shares of Fortress Investment Group LLC fell Friday after the investment manager said it priced a stock offering.

Fortress said it priced the offering of 40 million Class A shares at $5 per share, giving the company gross proceeds of $200 million. The underwriters of the offer have an option to buy as many as 6 million shares over the next 30 days.

Shares of the company closed at $5.26 on Thursday, and they fell 70 cents, or 13.3 percent, to $4.56 in afternoon trading Friday.

As of May 6, Fortress had 94.6 million Class A shares and 312.1 million Class B shares on the market. As a result, the offering dilutes the value of Fortress shares by about 10 to 11 percent.

Roger Smith, an analyst for Fox-Pitt Kelton Cochran, said Fortress could gain $60 million to $130 million in management fees if it spends $100 million of the proceeds from the offering to invest in new funds.

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