Vonage chooses banks for$600M IPO

According to a report in The Wall Street Journal, VoIP provider Vonage has chosen Citigroup, UBS, Deutsche Bank and Bear Stearns to underwrite its initial public offering. The report claimed other banks could participate as well. Insiders say the company's IPO could raise as much as $600 million. Vonage claims 1 million paying subscribers to its VoIP service.

A report last week in the Financial Times claimed UBS and Deutsche Bank were encouraging Vonage to consider a sale as a parallel process to its planned IPO. The advice could be an indication that the banks are worried that Vonage's numbers cannot sustain long-term market value. Analysts estimate that Vonage could sell for between $1 billion and $1.5 billion. The VoIP startup did not comment on the rumored sale.

For more on Vonage's initial public offering of stock:
- take a look at this article in ITworld