The Daily Telegraph reports that Goldman Sachs is said to be furious over the Sunday Times allegations that the firm favoured two client executives when it managed the floatation of Bookham Technology two years ago.
The Sunday newspaper alleged that two Irish businessmen, Brian Long and Peter McManamon, the founder and former finance director of another Goldman client at the time of the Bookham float, made around £500,000 profit after being 'gifted' shares by Goldman.
The firm are furious that their denials of wrong doing were ignored. Lukas van Praag, a Goldman spokesman, said: 'This is Sunday journalism at its worst. We gave categorical denials to the Sunday Times, denials they chose to ignore. For the record, Messrs Long and McManamon did not get their Bookham shares from us'.
The Sunday Times has now apologised for the article and confirmed that it got its facts wrong.
In another twist to the story, Rory Godson, the Sunday Times business editor, is said to have walked out on the newspaper as his position had become untenable. He had already resigned from the newspaper and is due to start his new job soon - as European Head of Corporate Communications..........at Goldman Sachs!