The UAW has ruined the U.S. auto industry and now they will pay the ultimate price.-Lou
SAN FRANCISCO (MarketWatch) -- Ford Motor Co. shares fell more than 5% late Monday after the automaker announced plans to sell 300 million shares of its common stock and use some of the proceeds to pay cash into its retiree health-care trust.
Ford stock closed down 2.6% at $6.08 before falling to $5.75 in extended trading.
"Today's equity offering is another example of the fast, decisive action we are taking as we build momentum on our plan, including further progress on improving our balance sheet," CEO Alan Mulally said in a statement.
Dearborn, Mich.-based Ford said it expects to grant underwriters a 30-day option to purchase up to 45 million shares.
Ford, the only U.S. automaker not receiving federal aid, reached an agreement with the United Auto Workers earlier this year that would allow the company to use equity to fund up to 50% of its payments instead of cash.
SAN FRANCISCO (MarketWatch) -- Ford Motor Co. shares fell more than 5% late Monday after the automaker announced plans to sell 300 million shares of its common stock and use some of the proceeds to pay cash into its retiree health-care trust.
Ford stock closed down 2.6% at $6.08 before falling to $5.75 in extended trading.
"Today's equity offering is another example of the fast, decisive action we are taking as we build momentum on our plan, including further progress on improving our balance sheet," CEO Alan Mulally said in a statement.
Dearborn, Mich.-based Ford said it expects to grant underwriters a 30-day option to purchase up to 45 million shares.
Ford, the only U.S. automaker not receiving federal aid, reached an agreement with the United Auto Workers earlier this year that would allow the company to use equity to fund up to 50% of its payments instead of cash.
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