Ford to buy back up to 116 million shares to offset dilution

Article by Christian Andrei, on May 9, 2014

Ford Motor Co. has disclosed a $1.8-billion stock repurchase program that covers up to 116 million shares to offset possible share dilution and to position the company to cut its automotive debt by $883 million At the of the first quarter of 2014, Ford had around $15.7 billion in automotive debt. It has disclosed plans cut the figure to around $10 billion by mid-decade.

A repurchase of 103 million shares will counter dilutive effect of potential conversions of Ford’s 4.25 percent senior convertible notes that are due November 15, 2016. With the closing stock price of $15.46 per share on May 7, 2014, those 103 million shares would have a value of around $1.6 billion.

Another repurchase of 12.6 million shares will offset the dilutive effect of share-based incentive pay for around 26,000 salaried employees for 2014 – amounting to almost $195 million at Wednesday's closing stock price.

Ford CFO Bob Shanks remarked that two repurchase moves will reduce the carmaker’s diluted shares by around 3 percent.

Ford can terminate the noteholders' conversion rights starting November 20, 2014, and the carmaker has the right to settle conversions with shares, cash or both. The repurchase program will also offset dilutive effect of shares Ford will issue to settle those conversions.

Topics: ford, shares

If you liked the article, share on:


Login or Create new account to add a comment!


More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016