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No secondary offering for Facebook

Social network will pay tax bill with cash; hold lifted on employee stock sales

Facebook's May IPO was highly anticipated
Facebook's May IPO was highly anticipated

Facebook today said it would not sell stock to cover a $2bn tax bill and will wave a provision that prohibited its employees from selling stock before November 15, in an effort to steady the nerves of investors and staff alike as its market value continues to plummet.

In an 8-K form filed with the US Securities and Exchange Commission, the company detailed its intention to pay for the taxes on the restricted stock units (RSUs) with cash holdings.

In addition Facebook CEO Mark Zuckerberg informed the SEC that has no intention of selling any of his stock in the next year. His holdings equate to "in aggregate approximately 444 million shares of Class B common stock as well as 60 million shares of Class B common stock" according to the filed 8-K.

Initially one of the most eagerly anticipated IPOs in recent years, the social media giant's value has halved since its May offering. More than 1 billion shares held by staff, insiders and early investors are set to become available for trading by year's end.