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GM IPO starts at $10b

posted 1 Nov 2010, 16:07 by Sam Mbale
Summary of business headlines include GM IPO: $10 billion in common shares, $3 billion in preferred stock-sources; Google's Android gives the world something to talk about; Wall Street ends barely changed ahead of mid-terms, Fed meeting.
USA-USCLOSE - General Motors is expected to file for its return as a publicly traded company as early as Tuesday. Sources familiar with the matter say GM wants to sell 365 million common shares at $26 to $29 a piece and sell $3 billion worth of preferred shares. The IPO is expected to reduce taxpayers' stake to just over 43 percent of the company bailed out as a result of the financial crisis. The IPO is expected to price on November 18th, according to sources.

Google's Android is quickly catching on with the world's smartphone users. Android took over the top spot in the North American smartphone market in the third quarter and took the world's number two spot, according to research firm Canalys. According to their data, Android leap-frogged over Research in Motion, Apple and Microsoft, but Nokia held its spot as the world's number 1. The rise of Android could benefit Google with the likelihood web users will use smartphones, more than computers, as their primary way to access the web.

Wall Street is awaiting the outcome of the mid-term election and the Federal Reserve's policy meeting.

Ahead of those key events there's data showing the economy is growing in a mixed fashion.

Factory activity expanded at a surprisingly strong pace in October. Manufacturing has been steadily growing for well over a year.

But pocketbooks were a little lighter in September. The Commerce Department says personal income fell for the first time in over a year. With fewer dollars to spend it is no wonder consumer spending only crept higher in September.

Wall Street was stuck near neutral - waiting for this week's big events.

And it was a similiar pattern in Europe, where major markets finished slightly higher.

Conway Gittens, Reuters

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