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Thursday, August 14, 2014

Alibaba film unit says found possible accounting irregularities; halts shares, (NASDAQ: FB)

Alibaba Pictures Group Ltd , the recently formed film and TV unit of Alibaba Group (IPO-BABA.N), said on Friday it had found possible accounting irregularities and asked for its Hong Kong-listed shares to be suspended until further notice.The announcement comes as e-commerce giant Alibaba Group is preparing for a U.S. initial public offering that bankers and investors expect to surpass the $16 billion raised by Facebook Inc when it listed in 2012.Alibaba Pictures used to be known as ChinaVision Media Group Ltd. Alibaba renamed it after completing on June 24 its $804 million purchase of a 60 percent stake in the company.In a filing to the stock exchange, Alibaba Pictures said its new management had during a review found possible "non-compliant treatment of financial information" from before the Alibaba purchase. Last month, the company also issued a profit warning.

Facebook, Inc. (Facebook), is engaged in building products to create utility for users, developers, and advertisers. Shares of FB traded higher by 0.71% or $0.526/share to $74.30. In the past year, the shares have traded as low as $36.90 and as high as $76.74. On average, 42897500 shares of FB exchange hands on a given day and today's volume is recorded at 22207020.