FORD (U.S.) AND FORD (U.K.)

Press, Volume XCIX, Issue 29363, 16 November 1960, Page 19

FORD (U.S.) AND FORD (U.K.)

£l2Bm Takeover Offer

(N.Z. Press Association—Copyright) LONDON, November 14. The Ford Motor Company of the United States intends to make an offer for all the ordinary stock of Britain’s Ford Motor Company which it does not already hold, it was announced tonight. American Ford already owns about 54.6 per cent, of English Ford’s £39,024,248 issued ordinary capital. Tonight’s statement said that the purchase price would be about 20.5 dollars (145 shillings) a unit of £l.

In a letter to the board of English Ford, the American company states: “Our objective is to obtain great flexibility and enable us better to co-ordinate our European and American manufacturing facilities and integrate further our product lines and operations on a world-wide baas. Employment Protected “We would like to add that so far as we are concerned, we intend that your company’s operations shall continue under your direction without change in its employment policy or in its development programme." The letter said the American company offered to buy all the 17,726,804 ordinary shares of £1 sterling each which it did not already hold. This was subject to obtaining the consent of the British Treasury, “which we intend to seek immediately.” The letter also said: “The offer will be conditional, inter alia, upon acceptance by the holders of not less than 75 per cent, in number and 90 per cent, in value of the stock for which the offer is made, or such lesser number or percentage as we may decide.” The Ford deal is estimated to be worth £l2Bm.