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Vonage cut off on stock opening: Web phone firm sees IPO shares plunge.

Chicago Tribune (Chicago, IL)

| May 25, 2006 | COPYRIGHT 2007 Chicago Tribune. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Eric Benderoff and Mike Hughlett

May 25--The disappointing Wall Street debut of what might have been the next high-tech darling offered a startling look at how fast opinions can change in the digital age.

Until Wednesday, a buzz surrounded Internet phone provider Vonage Holdings Corp., which offered a promising technology that could radically alter how people communicate.

But on its first day of trading, Vonage was judged to be just another company peddling a me-too commodity. Met with tremendous skepticism, its initial public offering tumbled nearly 13 percent. Shares that were priced at $17 on Tuesday evening shed $2.10 on Wednesday to close at $14.85.

"The biggest concern investors have, and the biggest problem I have, is the level of competition in the voice telephone business," said Todd Rethemeier, a stock analyst at Soleil Securities.

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Source: HighBeam Research, Vonage cut off on stock opening: Web phone firm sees IPO shares...

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