(Reuters) - Ford Motor Co said on Monday that it would sell 300 million common shares and use part of the proceeds to pay off its healthcare obligations to the United Auto Workers under the terms of a recently concluded deal with the union.
Ford also said it expects to grant to the underwriters -- Citigroup, Goldman Sachs, JPMorgan and Morgan Stanley -- a 30-day option to buy up to 45 million shares of common stock.
Ford shares fell 4.6 percent to $5.80 in after-market trade following the stock offering. At that price, the new shares would raise about $1.7 billion for Ford.
Ford is the only U.S. automaker that has not sought government aid.
Ford's stock offering comes on the heels of a successful debt exchange. Ford shares have had a four-fold rise in price since hitting a low of $1.50 on February 20.
Ford said net proceeds from the stock offering would also be used for general corporate purposes.
Read more here
Monday, May 11, 2009
Subscribe to:
Comments (Atom)
