Filed under: Ford, Earnings/Financials
Ford to sell $500m in new stock
In an effort to secure more capital and reduce debt, Ford plans to sell $500m in new stock. Ford will use the cash infusion to buy bonds from Ford Motor Credit, which has been struggling with the slow economy and nation-wide credit crunch. Goldman Sachs is handling the stock sale, and Ford has given no timetable for when the stocks will enter the market. Ford has already exchanged debt for equity to the tune of $927m in the past year. With shares of Ford stock at under $5 per share right now, anybody can own a share of the Blue Oval for the price of a value meal. [Source: Automotive News (subs req'd)]
Reader Comments (Page 1 of 1)
GROM 2:13PM (8/15/2008)
No cash huh?
How long can they last?
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ken_aisin 2:32PM (8/15/2008)
I would rather buy Ford's 33.9% stake in Mazda.
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C.W. 2:35PM (8/15/2008)
buy buy buy!
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Randy 3:16PM (8/15/2008)
Yup!
C.W. 2:37PM (8/15/2008)
you're kidding right? they're still sitting on over $25 bill in secured cash from a year ago... they have more liquid cash to use for their restructuring than any of the domestic 3. this is done for a completely different reason.... you know what, nevermind.... just read the news.
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Epyx 2:49PM (8/15/2008)
This is story is to nuanced for the average AB reader. Let them spew comments without a basis of what they are talking about, dont waste your time.
C.W. 2:37PM (8/15/2008)
for GROM... (reply function not working...)
you're kidding right? they're still sitting on over $25 bill in secured cash from a year ago... they have more liquid cash to use for their restructuring than any of the domestic 3. this is done for a completely different reason.... you know what, nevermind.... just read the news.
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EVan 2:42PM (8/15/2008)
Is there any way that releasing more stock out into the market increases their susceptibility to a hostile takeover?
I'm assuming that when a company issues more stock it increases the percentage of the company in the public domain. Or am I totally off base on this one?
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LDMAN 3:23PM (8/15/2008)
In Ford's case, I seem to remember that the family own preferred stock that gives secures Ford's family voting majority.
Joe 3:42PM (8/15/2008)
LDMAN, that is the case. Ford cannot be sold without the Ford family's approval. That's why Kerkorian couldn't take over the company, no matter how hard he tried.
Mike 5:34PM (8/15/2008)
With the stock under 5 bucks and Ford ramping up production of their Euro-Car platforms I don't see how this isn't a buy. For Chrisa
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Mike 5:37PM (8/15/2008)
Never post to Autoblog while you're recining in a lounge chair sipping on an ice cold adult beverage.
What do you care 6:38PM (8/15/2008)
I'd buy it a share.
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Chris 7:40PM (8/15/2008)
Well I have a hundred bucks to spare...should buy me enough Ford stock to get me a seat on the board. Poor Ford...they should be buying BACK stock...
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