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Comment RSSFinancial crisis: Ford sells $540 million of Mazda stock
18.11.08 # 5:16Visited 141 times, 2 so far today# Business # One Comment
Ford Motor Co. has said that it will sell 20 percent of Mazda tomorrow, reducing its holdings to 13 percent.
The company is trying its best effort to pull itself from the financial crunch, which lashed the global economy recently.
Hiroshima-based Mazda will buy back up to a 6.9 percent stake for as much as 17.9 billion yen ($186 million), it said separately. The remainder of the shares will be bought by unidentified “strategic business partners.”
Ford, which rescued Mazda from bankruptcy 12 years ago, will raise cash from the sale as the
credit crunch makes borrowing more difficult.
Ford, along with GMAC LLC and Chrysler, has been shut out of the market for bonds backed by auto loans.
Ford’s last public sale of bonds backed by auto loans, a $5.3 billion offering on May 16, cost the automaker 47 times the interest it paid on a comparable sale a year earlier.
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Ford buys shares in Mazda; Ford sells shares in Mazda.
BMW bought British automaker Rover; BMW sold British automaker Rover.
Daimler-Benz bought Chrysler; Daimler-Benz sold Chrysler.
Ford bought Jaguar; Ford sold Jaguar.
Wake up, people. Hello! Hello! Do you see a pattern here?
WHY WOULD SUPPOSEDLY INTELLIGENT EXECUTIVES MAKE SUCH MAJOR ACQUISITIONS ONLY TO SELL THEM A FEW YEARS LATER?
(Answer: Because they were just following orders)