Ford seeks to raise cash with offering
Automaker looks to near-$2 billion stock offering to fund its retirees' health benefit trust.
NEW YORK (CNNMoney.com) -- Ford Motor Co. announced Monday a plan to sell 300 million shares of its common stock in a public offering to help meet funding requirements for retirees' health benefits.
Ford (F, Fortune 500) stock fell 7% to $5.67 in after-hours trading following the news. With 2.27 billion shares outstanding, the offering would dilute those stakes by more than 13%. Ford would raise more than $1.8 billion with the offering based on its Monday closing price.
Under its agreement with the United Auto Workers union, Ford needs to pay into a health care trust for its retired workers. Ford did not immediately return requests for comment.
Unlike competitors General Motors (GM, Fortune 500) and the bankrupt Chrysler, Ford has proven it is in far better shape to weather the crisis in the global auto industry than its two U.S.-based rivals.
Ford reported a $1.4 billion loss for the first quarter last month, but the loss was narrower than expected. Ford Chief Executive Alan Mulally has repeatedly said that he is confident the company will not need the same kind of federal bailout that is keeping its U.S. rivals alive.
"Today's equity offering is another example of the fast, decisive action we are taking as we build momentum on our plan, including further progress on improving our balance sheet," Mulally said in a statement. He said the company remains positioned to return to profitability.
The automaker also announced it is offering an option for its underwriters - Citigroup (C, Fortune 500), Goldman Sachs (GS, Fortune 500), JPMorgan Chase (JPM, Fortune 500) and Morgan Stanley (MS, Fortune 500) - to buy up to 45 million shares. 
