Google, the internet search engine which confirmed plans for a $2.7bn (€2.26bn) float last week, ruled out Goldman Sachs as a lead underwriter for the deal after Hank Paulson, chief executive of the investment bank, angered the management of Google.

According to Newsweek magazine, Google learned Paulson had contacted Kleiner Perkins, the venture capital firm and one of the search engine's largest investors about the deal. Management at Google said his approach went against its guidelines for how investment banks pitching for the underwriting business - worth an estimated $100m in fees - should try to win the business, said the article.