Ford UAW Retiree Fund to Raise $1.78 Billion from Warrant Sale
A health care trust for United Auto Workers retirees from Ford Motor Co. expects to raise about $1.78 billion from the sale of warrants to buy the automaker’s stock, Bloomberg reported.
The offering was priced at $5 a warrant through a modified Dutch auction yesterday, Ford said in a statement today. The Dearborn, Mich.-based company said on March 29 that the UAW retiree fund would sell all of its 362.4 million warrants.
The trust was created as part of the 2007 contract agreement between the Detroit-based union and Ford. The warrants were part of an exchange for taking responsibility from the automaker to pay for the retirees’ health care.
The warrants each give the right to buy a share of Ford common stock for $9.20 until the start of 2013. They are slated to trade on the New York Stock Exchange starting today under the symbol F WS, the company said.
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