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Ford sets spinoff terms
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June 13, 2000: 3:26 p.m. ET
Shareholders to receive one share of Visteon for every 7.64 Ford shares held
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NEW YORK (CNNfn) - Ford Motor Co. announced on Tuesday the terms for the spinoff of its Visteon unit, putting the deal's worth at about $2.8 billion.
Under the terms, Ford shareholders will receive one share of Visteon Corp., the company's auto parts division, for approximately every 7.64 shares of Ford common and class B stock they own. Ford employees who are shareholders as part of the company's employee savings program will receive cash.
Based on Visteon's closing price Monday of 17-9/16, the deal is worth about $2.8 billion, or $2.30 per Ford share. Without the employee cash payments the spinoff would total about $2.3 billion, or $1.89 per share.
The actual value of the deal will be determined by the closing price on June 28 - the date when Ford will distribute the 130 million Visteon shares to its shareholders.
With 81,000 employees and $19 billion in annual sales, Visteon will be one of the biggest players in the auto parts business. Ford has mulled a spinoff for over three years, deciding against an initial public offering like General Motor's (GM: Research, Estimates) parts division, Delphi (DPH: Research, Estimates).
 As a way of determining the price of Visteon shares, the unit's stock is now trading on the New York Stock Exchange as a "when-issued" stock, which will finish trading on the distribution date. The stock began trading on June 8 at $11.85.
In SEC filings, Ford (F: Research, Estimates) originally estimated the value of the spinoff to be about $1.5 billion. 
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