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April 1, 2010

US: UAW health trust should get $1.78bn from Ford warrants

The United Auto Workers healthcare trust is expected to net about US$1.78bn from an auction of Ford Motor stock warrants it received as part of its funding, the automaker has said.

The United Auto Workers healthcare trust is expected to net about US$1.78bn from an auction of Ford Motor stock warrants it received as part of its funding, the automaker has said.

Ford, which will receive no proceeds from the sale, told Reuters the secondary offering of the 362.4m warrants by the union was priced at $5 in an auction on Tuesday.

The warrants have been listed on the New York Stock Exchange starting with the open of trading on Wednesday, Ford said. The sale closing is expected on 6 April.

The union’s Voluntary Employee Beneficiary Association, or VEBA, received the warrants at the end of last year. They allow the holder to buy Ford shares at $9.20.

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