Detroit Bailout; Ford Opts Out?

Tuesday, December 09, 2008 | 09:30 AM

As we noted Saturday morning, the $15B Detroit bailout is moving ahead. The preliminary deal looks to be a a loan, plus supervision and an equity stake. And I'm not sure, but Ford is making noise as if they are opting out of part of the deal:

The U.S. government may end up holding stakes in General Motors Corp., Ford Motor Co. and Chrysler LLC if Congress and the White House reach agreement on a financial bailout for the automakers.

Under the proposed rescue, details of which are still being discussed, the Treasury would get warrants for stock equivalent to 20 percent of any government loans. With GM seeking as much as $10 billion and valued at $3 billion, the state may become the biggest shareholder. The legislation isn’t clear on what kind of holding the government would take, leaving it the option of preferred, common, voting or non-voting shares.

Continued here

Tuesday, December 09, 2008 | 09:30 AM | Permalink
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