The reason, the FT says, was disclosed in an amended IPO prospectus (see PDF) in which GM said that, "an employee of a previously named proposed underwriter ... distributed an unauthorised e-mail to various potential institutional accounts."
The email supposedly contained "discussed pricing and other details of the $13bn issue with clients before they were made public last week," the FT noted.
The Telegraph says the "rogue email" is likely to cost UBS $10 million in fees, along with some more of its reputation that it has been trying hard to win back after several years of terrible results.
Robert N. Charette is a Contributing Editor to IEEE Spectrum and an acknowledged international authority on information technology and systems risk management. A self-described “risk ecologist,” he is interested in the intersections of business, political, technological, and societal risks. Charette is an award-winning author of multiple books and numerous articles on the subjects of risk management, project and program management, innovation, and entrepreneurship. A Life Senior Member of the IEEE, Charette was a recipient of the IEEE Computer Society’s Golden Core Award in 2008.