WHEN: Today, Tuesday, March 18th
WHERE: CNBC's "Fast Money"
Following is the unofficial transcript of breaking news from CNBC's Kayla Tausche. All references must be sourced to CNBC.
KAYLA TAUSCHE: MELISSA, I JUST GOT OFF THE PHONE WITH SOME SOURCES AND I WANT TO BRING YOU THE LATEST ON WHAT WE KNOW. AS OF RIGHT NOW, FIVE BANKS HAVE BEEN TAPPED TO BE THE JOINT GLOBAL COORDINATORS FOR THIS IPO. THAT'S CREDIT SUISSE, DEUTSCHE BANK, GOLDMAN SACHS, JPMORGAN AND MORGAN STANLEY. IT IS EXPECTED THAT POTENTIALLY AT SOME POINT CITIGROUP COULD PLAY A MORE JUNIOR ROLE. BUT AS OF RIGHT NOW, THOSE FIVE BANKS WILL BE THE JOINT LEADS ON THIS MEGA DEAL WHENEVER IT HAPPENS. NOW, OF COURSE AS WE SEE THROUGH THESE DEALS, MORE BANKS GET ADDED AS WE GO DOWN THE ROAD, BUT THE MAJOR ECONOMICS ARE IN IT FOR THOSE FIVE BANKS. I'M TOLD THAT THE BANKERS AND THE LAWYERS WILL BE MEETING WITH THE COMPANY IN HONG KONG NEXT TUESDAY, MARCH 25THTO DO WHAT ONE SOURCE DESCRIBED AS THE RULES OF ENGAGEMENT. THEY WILL BE BUILDING THE IPO DECK – THE SLIDES FOR THE ROADSHOW – THEY WILL ALSO BE DIVIDING UP THE S-1 AND FIGURING OUT WHO WILL DO WHAT IN TERMS OF PUTTING TOGETHER THAT MASSIVE DOCUMENT. I'M TOLD TO EXPECT THE ALIBABA S-1 IN APRIL, TO LOOK FOR AN IPO IN Q3 AND THAT AS OF RIGHT NOW, THE COMPANY HASN'T DECIDED EXACTLY WHAT VALUATION IT WANTS TO GO WITH. IT WILL LEAVE THAT UP TO THE MARKET, BUT AS FAR AS THE PROCEEDS FROM THIS DEAL, MELISSA, THEY WILL BE NORTH OF 15 BILLION DOLLARS. THE COMPANY'S VALUATION WILL BE NORTH OF 100 BILLION DOLLARS. THE QUESTION AT THIS POINT, HOW MUCH HIGHER THAN 100 BILLION DOLLARS THE COMPANY WILL BE WILLING TO VALUE ITSELF GIVEN HOW FAVORABLE THE IPO MARKET HAS BEEN TO THESE COMPANIES. BUT AS OF RIGHT NOW, WE KNOW FIVE BANKS, A MEETING NEXT TUESDAY AND LOOK FOR AN IPO IN THE THIRD QUARTER.
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