Facebook halts secondary market trading before IPO

SAN FRANCISCO - Social-networking siteFacebook is halting the sale of its shares on secondary marketseffective next week, aiming to reduce churn in its valuationwhich could complicate matters as it sets an IPO price, a personfamiliar with the situtation said on Wednesday.  

The company, which is preparing for what could be SiliconValley's largest initial public offering, has asked firms thatarrange trading of its privately held shares to stop, the personsaid.  
Earlier this week, one of the firms that arranges trading inFacebook shares, SharesPost Financial, told investors it wasmoving up the closing date for its Facebook auction to March 30from April 2.  

Facebook filed its paperwork to go public in early February.Its IPO, expected to value the company at around $100 billion,is expected in coming months. 

A Facebook spokesman declined to comment. Representatives atSharesPost and SecondMarket, another firm that arranges tradingin private shares, didn't immediately respond to requests forcomment. 
Bloomberg reported the news earlier Wednesday.

(Reuters)