Deal Talk Wafts Over Google

Shares of Google(GOOG Quote), which have jumped 6% since last week's announcement of its inclusion in the S&P 500, slumped 2% Thursday on news of the company's plans to sell an additional $2 billion in stock.

Last night, Google said it would sell 5.3 million shares to accommodate demand from index funds buying them for their portfolios. Google will join the S&P 500 after the close of trading Friday. The proceeds from its share sale will be used for "general corporate purposes, including working capital and possible acquisitions of complimentary businesses, technologies and other assets," according to Google's registration statement with the Securities and Exchange Commission.

Google certainly doesn't need the money, since it already has about $8 billion in cash on its balance sheet. In addition, the Mountain View, Calif.-based company just raised $4 billion in September. Wall Street doesn't expect the money to remain idle. ...