Ford will sell new shares to raise up to $2 billion

Ford Motor Co. plans to issue up to 345 million common shares that could raise up to $2 billion, the

Financial Times

reported. “The proceeds could enable Ford to pay cash for a sizeable chunk of its contributions to a union-managed healthcare trust that would otherwise have been made in shares,” the article said. The

Financial Times

noted, “The Ford family will remain firmly in control through its holdings of multiple voting stock.” The

Wall Street Journal

reported that the move indicates Ford “believes investors will pin their hopes on it as General Motors Corp. and Chrysler LLC are consumed by uncertain reorganizations. Ford believes raising the cash is worthwhile despite enduring any backlash from current stockholders who fear shares will be diluted.” (Sources:

Financial Times

, May 12, 2009;

Wall Street Journal

, May 12, 2009.)