The United Auto Workers (UAW) union is hoping to raise at least $1.3 billion for its retiree health trust by selling all of its 362 million warrants for Ford Motor Co. stock.
The trust got the warrants in Dec. 2009 as part of the UAW’s contract with the automaker. The automaker and union agreed to the trust to help the company remove retiree healthcare costs from its books.
The trust set a minimum price for each warrant at $3.50. Each warrant gives the holder the right to buy a Ford share at $9.20.
The combined $12.70 that a buyer would pay for both the warrant and a share of Ford stock is 8 percent below Ford’s closing stock price on Friday of $13.86 a share.
Ford shares were selling at $13.67 a share in pre-market trading today.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info