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Ford Selling Stake in Mazda

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http://cnnwire.blogs.cnn.com/

TOKYO, Japan (CNN) — Ford is selling a 20 percent stake in Japanese automaker Mazda to raise cash, the companies announced Tuesday.

The deal will see Ford liquidate its holdings in Mazda from 33.4 percent to 13 percent. The stocks will be purchased by Mazda and several “strategic business partners,” a statement from Mazda said.

Ford and Mazda have been involved in a strategic partnership for nearly 30 years, the companies said. But like other U.S. automakers, Ford has fallen on hard times and recently announced a $3 billion third-quarter loss.

“This agreement allows Ford to raise capital that will help fund our product-led transformation, and at the same time, allows Ford and Mazda to continue our successful strategic relationship in the best interest of both companies,” said Alan Mulally, Ford President and CEO.

http://ca.news.yahoo.com/s/afp/081011/busi...azda_investment

TOKYO (AFP) - US giant Ford Motor Co. plans to sell most of its shares in Japan's Mazda to raise cash to it tide over a business slump amid the current global financial crisis, a press report said Saturday.

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Ford has begun to sound out a number of Japanese companies on the planned share sale, public broadcaster NHK reported quoting unspecified sources.

NHK said Mazda Motor Corp. itself was expected to buy back some of the shares.

No Mazda official was immediately available for comment.

Ford is Mazda's biggest shareholder with a 33.6 percent equity, or 473,535,000 shares, according to the Japanese firm's website.

Ford is considering dumping about 20 percent of Mazda's shares to raise about 100 billion yen (one billion dollars), the report said, adding that it expected to remain a major shareholder in Japan's fifth largest automaker.

In July, Ford announced a record 8.7 billion-dollar loss in the second quarter largely due to hefty charges as Ford wrote down the value of its assets and recognized losses from auto leasing.

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