THE NEWS WRAP: Facebook prices shares at $US38 ahead of IPO

Facebook has priced its shares at $US38 each, ahead of one the most eagerly-awaited public floats in history.

The social media giant’s initial share price places its value at $US100 billion, with analysts predicting a 50% jump in value on the first day in trading.

The IPO will open up Facebook to shareholder scrutiny but founder Mark Zuckerberg will retain almost 56% of the voting power of the company.

Government rejects workplace flexibility criticisms

The federal government and unions have rejected claims that multinational businesses will abandon Australia due to the country’s workplace laws.

Yesterday, BHP Billiton chairman Jac Nasser said that investors were spooked by the lack of flexibility in Australian workplaces.

However, Treasurer Wayne Swan said that he doubts BHP would reconsider its investment in Australia, with unions also dismissing Nasser’s claims. 

ACCC to probe clothing importers

The competition watchdog is planning to investigate claims that clothing importers are striking agreements with overseas suppliers to stop selling products to Australians online or instructing the suppliers to raise their online prices.

According to Fairfax, the Australian Competition and Consumer Commission has warned businesses involved in exclusive dealing or price controlling that they could face heavy fines.

Overnight

The Dow Jones Industrial Average dropped 156.06 points, or 1.2%, to 12,442.49. The Australian dollar slid to 98.85 US cents.