Ford offering 300 million shares in public offering
5/11/2009NEW YORK Ford Motor Co. says it is launching a public offering of 300 million shares to help fund its retiree health care trust.
The Dearborn, Michigan, automaker announced the offering Monday. Ford remains the only U.S. automaker that has not received government aid.
Shares of Ford closed Monday at $6.08. At that price, the offering would net the company $1.82 billion, though public offerings often cause a stock's value to fall.
Ford says it will use the proceeds for general corporate purposes, including making payments to the Voluntary Employee Beneficiary Association, its union health care trust.
The company says it is granting the underwriters a 30-day option to purchase up to 45 million shares.