Ford to offer 300 m shares to fund healthcare

• Source: The Global Times
• [18:54 May 12 2009]
• Comments

By Shi Jierui

According to the Washington Post, Ford announced a public offering of 300 million shares Monday to help fund health care for its retirees.

In March, the United Auto Workers (UAW) approved a new contract that allows Ford to pay as much as half of its $13.2 billion healthcare commitment with stocks instead of cash, relieving the company of a large cash obligation.

The offering will dilute outstanding shares by about 13 percent. Jim Hossack, an analyst with AutoPacific, an industry consulting firm, told the Washington Post that the stock has soared in recent months from a November low of $1.01, making the offering more attractive.