Jump to content

UAW hopes to gain from rising Ford stock


NINETY EIGHT REGENCY

Recommended Posts

UAW hopes to gain from rising Ford stock

BY BRENT SNAVELY

FREE PRESS BUSINESS WRITER

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.

link:

http://www.freep.com/article/20100329/BUSINESS01/100329012/1210/UAW-hopes-to-gain-from-rising-Ford-stock

Link to comment
Share on other sites

Join the conversation

You are posting as a guest. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

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

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



About us

CheersandGears.com - Founded 2001

We ♥ Cars

Get in touch

Follow us

Recent tweets

facebook

×
×
  • Create New...