FoMoCo announced yesterday that it has raised $1.4 billion through its offering of 300 million shares for $4.75.
“We are pleased with this equity offering, which is another key step in our plan to transform Ford into an exciting, viable enterprise poised to return to profitability,” said Alan Mulally, Ford president and CEO. “By issuing equity now and potentially funding a larger portion of our future VEBA obligations with cash, we are able to further improve our balance sheet and significantly reduce the potential dilutive impact of the VEBA obligations on existing shareholders.”
During early trading yesterday, Ford’s stock dropped 13 percent.
– By: Omar Rana