  Gannon Member Username: Gannon Post Number: 7204 Registered: 12-2003 |
WDET just had a report on FoMoCo leveraging everything they own...right on down to the Blue Oval. Kleinfelter gets it...total cash gained from this move will give them enough wiggle room to buy back all their outstanding stock, so they can tell Wall Street to jump into the Harbor. Great job, Quinn! Heh. | ||
Ray1936 Member Username: Ray1936 Post Number: 946 Registered: 01-2005 |
What shudders me is the faint rumor about making young Bill Ford Jr. the GM of The Detroit Lions. If he does for the Lions what he did for FoMoCo, we'll long for the Matt Millen days........  | ||
Lilpup Member Username: Lilpup Post Number: 1494 Registered: 06-2004 |
Gannon is there any real evidence that Ford will buy back stock? I'd love to see it happen but am skeptical. | ||
Spidergirl Member Username: Spidergirl Post Number: 239 Registered: 12-2004 |
Ouch: "If management fails in its latest attempt to make the ailing company profitable again, Ford may be left with little choice but to find a buyer or merger partner or file for bankruptcy protection." http://www.nytimes.com/2006/11 /27/business/27cnd-ford.html | ||
Gannon Member Username: Gannon Post Number: 7206 Registered: 12-2003 |
Oh no...sorry, that was MY tie...Quinn merely added the tag to the end of the article reminding everyone that the figure from the mortgaging would be something like 2 billion MORE than what they would need. Ahem. I thought it was perfect...he never said it directly, but it was clear if you knew the back story from a few months ago. It was rumored that Ford discussed options to get out from under Wall Street's thumb, now that they achieved 'junk' status on all their debt anchor. Made the anchor something like four to ten times heavier and much more difficult to manage. (I didn't do the math with interest rates, I'm just guessing proportionately for the analogy) H-M-M-m-m-n-n, then they had that shake-out where Wm Jr was booted as CEO, but kept as Chairperson (right?!)...and his cousin was fired as well. Actually, I think she went into early retirement. Don't remember her name. NOW, the same move (and I'll bet that it will spin into a complete stock buyback), but with self-generated capital from an asset sale and rent-back. Curious, in light of that documentary The Corporation. The family could've gotten control over their grandpappy's corporation, but it looks like it might've been wrestled from them. One last chance for an old school manufacturing corporation to be redeemed and become sustainable and ethical...situation isn't close at any other car company for a family run on stock. It might be fun to see the family start rushing to buy and end-run around their detractors. | ||
Psip Member Username: Psip Post Number: 1315 Registered: 04-2005 |
Why do I get the feeling that little creep Mark Fields is behind this? And lets see how he makes out in the deal, shades of Kmart all over. He holds an economics degree from Rutgers University (USA) and a Masters in Business Administration from Harvard Graduate School of Business. <kiss of death | ||
Lilpup Member Username: Lilpup Post Number: 1496 Registered: 06-2004 |
Yeah, I know the backstory and I caught Quinn's remark. My fantasy scenario is that the family gets everything back, quietly works on new products (especially alternate fuel options) since they won't have to reveal their hand, and comes back strong leaving Wall Street crying in the rearview mirror. BTW the 'American father' of the Toyota Prius died Saturday. His replacement is uncertain at this time. | ||
Livernoisyard Member Username: Livernoisyard Post Number: 1811 Registered: 10-2004 |
As far as voting power goes at FMC, the Fords own roughly 10% of the business and control another three times that amount. This makes 40% of FMC under their control. Ford will probably survive as a specialty vehicle company--mostly around the "F" series or any profitable large truck models and, perhaps, the Mustangs. As to its size and market share: it will probably settle down to around 1/2 its former size but might end up only about 1/3 of its former self. |
