State Street expects up to $2.8 b in share offering

State Street Corp. said today that it will sell 35.7 million shares at a 2 percent discount to yesterday's closing price.

The financial services company priced the offering $70 per share. The company's stock closed yesterday at $71.36 on the New York Stock Exchange.

The news sent shares down in premarket trading. In heavy trading, shares fell $1.71, or 2.4 percent, to $69.65.

The company said it expects to take in $2.5 billion from the offering. Assuming underwriters exercise their 5.4 million-share allowance for overallotments, State Street could net up to $2.8 billion.

Goldman Sachs & Co. and Morgan Stanley are joint book-running managers. Goldman, Sachs & Co. will be syndicate trading manager and settlement agent. Credit Suisse Securities (USA) LLC, Lehman Brothers Inc., and UBS Securities LLC are co-managers. (AP)