Ford will issue 300 million shares to raise money

Ford Motor Co. will issue 300 million new shares of common stock in an effort to raise money to cover payments to a union-run trust that is assuming responsibility for the company's hourly retiree health care expenses.

"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," CEO Alan Mulally said Monday. "We continue to make strong progress on our transformation plan — gaining retail market share with great new products, improving quality, reducing costs and positioning Ford for a return to profitability."

Citi; Goldman, Sachs & Co.; J.P. Morgan; and Morgan Stanley are managing the offering. Ford said it expects to grant the underwriters a 30-day option to purchase up to 45 million shares.