FoMoCo may lose some investors due to GM IPO, says Bill Ford

Article by Christian A., on August 27, 2010

Some investors may reduce their holdings in his company to purchase shares in General Motors Co.'s initial public offering, according to Ford Motor Co. Executive Chairman Bill Ford who spoke to reporters at an event in Royal Oak, Michigan. He added that this would spread their risk across the automobile industry.

Ford said that a portion of the money will be rebalanced into GM but he thinks that ultimately, the companies will succeed based on performance.

He shared that it doesn't make any difference to him "where our shares are or their shares are on any given day."

GM, which is 61%-owned by the US Treasury, recently filed documents for a share sale that would reduce the government's stake and signal its return to public markets only a year after its bankruptcy proceedings.

Sources say that the offering could be as high as $16 billion. Ford revealed that talks with the United Auto Workers union are taking place ahead of 2011 negotiations.

He stated that when it comes to labor costs, Ford is "largely competitive" with GM and Chrysler Group LLC but he thinks that in several areas, they're not at par. [via autonews]

Topics: gm, ford, ipo

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