Shares in Blackstone Group fall below IPO price

June 29, 2007

Stock in the Blackstone Group, a major private equity founded by Peter G. Peterson and Stephen Schwarzman, has fallen below its initial public offering price of US$31.00.

Blackstone L.P. (NYSE symbol: BX) initially soared 13 percent after being offered on the New York Stock Exchange last week. However, lately the stock has dropped to below $30. The stock was issued to brokerages for $31 a share.

Some fear that the so-called "Private Equity Boom" may be at its peak. Others attribute the falling price to recent discussions in Washington of changing laws that critics call "loopholes," which allow such firms to pay capital gains tax instead of income tax.