StockMarketWire.com - Motor giant Ford is raising $1.4bn through the public of offering of 300 million shares at $4.75 apiece.

Ford also granted to the underwriters a 30-day option to purchase up to 45 million additional shares of common stock to cover over-allotments.

Net proceeds are expected to be used for general corporate purposes, including to fund with cash, instead of stock, a portion of the payments the company is required to make to the Voluntary Employee Beneficiary Association health care trust with the United Auto Workers.

Ford president and chief executive said Alan Mulally said: "We are pleased with this equity offering, which is another key step in our plan to transform Ford into an exciting, viable enterprise poised for profitable growth."


Story provided by Business Financial Newswire