Sign in to follow this  
Followers 0

UAW hopes to gain from rising Ford stock

1 post in this topic

UAW hopes to gain from rising Ford stock



Ford said today that the UAW’s health care trust fund has decided to place 362 million warrants, which are similar to stock options, for sale on the open market, giving the UAW an opportunity to take advantage of Ford’s rapidly rising stock price.

Ford granted the UAW the warrants on Dec. 31 to meet the terms of an earlier agreement to transfer Ford’s future retiree health care obligations to the UAW’s health care trust fund.

The retiree trust fund is the UAW's Voluntary Employees Beneficiary Association, which is more commonly called a VEBA.

The UAW has the option of selling the warrants when Ford’s stock price is trading at more than $9.20 per share. Each warrant gives the holder the right to buy one share of Ford stock for $9.20.

Ford’s stock closed on Friday at $13.86 per share and Ford announced on Sunday that it reached a deal to sell its Volvobrand to Chinese automaker Geely for $1.8 billion.

Ford also said today that it has decided to use $3 billion to pay down a portion of its debt. The payment would reduce Ford’s total debt from about $34.5 billion to $31.5 billion.



Share this post

Link to post
Share on other sites

Your content will need to be approved by a moderator

You are commenting as a guest. If you have an account, please sign in.
Reply to this topic...

×   You have pasted content with formatting.   Remove formatting

×   Your link has been automatically embedded.   Display as a link instead

Sign in to follow this  
Followers 0