November 15, 2010
LOW-BALLING OURSELVES:
Retail sales rise is led by higher auto purchases (AP, 11/15/10)
Retail sales, helped by strong demand for autos, increased in October by the largest amount in seven months. [...]For October, sales at auto dealerships increased 5 percent. That gain had been expected given reports from automakers that total October sales rose to an annual rate of 12.3 million units, the best monthly showing since the government's Cash for Clunkers program had sent sales surging in August 2009.
G.M. Offering Price Range Rises to $32 to $33 (MICHAEL J. DE LA MERCED AND NICK BUNKLEY, 11/15/10, NY Times)
General Motors is looking to price shares in its initial public offering to $32 to $33, higher than the previously estimated price range of $26 to $29, people close to the matter tell DealBook.The size of the common stock offering will remain the same, meaning that G.M. could raise more than $11.8 billion at the midpoint of the new price range. [...]
Several analysts have said that the current range appeared low, given G.M.’s business performance in recent quarters. People involved in the offering process said that the company and the federal government had sought a price that would attract high demand.
“Fortunately, things at G.M. have gone as well or better than we could expect,” Steven Rattner, the former head of the Obama administration’s auto task force, said at a conference in Detroit on Monday. “It’s clear now that this offering is going to be a huge success. It’s clear now that demand is enormous, and it’s clear that the price will be higher rather than lower.”
