Evening star. [volume] (Washington, D.C.) 1854-1972, 1956-01-17
|S64.5OPriceSel
On Ford Stock
Sale Tomorrow
Foundation to Get
$642 Million in
Equity Financing

placed bOQay Oh JUkuUETOWS VAST
public offering of Ford Motor
Co. stock.
The Ford Foundation. Inc.
will reap $642. 100000 from the
biggest corporate equity financ-
ling in history.
The price was reported to the
Securities and Exchange Com
mission as the final legal STEP
required before the 10.2 million
common shares are offered to-
morrow morning.
The stock will be traded over
the-counter until it moves to
the New York Stock Exchange
around March /.
The underwriters--some 722
securities firms across the coun-
ltry--have reported almost un-
precedented investor interest in
the issue which admits the pub
lie into co-ownership with the
heirs of the company founder,
the late Henry Ford.
The price was supplied by an
amendment to the original Ford
registration statement filed with
SEC last December 81 as re-
Iquired by law to protect investors
Quick Clearance Seen
The commission win meet this
Afternoon to consider the pros
pectus. It is expected to clear
1.-THE issue speedily. The stock
then can be listed for trading
on the New York. Detroit and
other major exchanges.
The price actually was set
late yesterday by the seven CO.
managers Of the huge offering.
While the public will pay
I$64.50 for each Of the new
shares, the Ford Foundation,
owner and seller Of the stock.
win receive 500 q share. The
difference goes into discounts
and commissions paid to the
underwriters and investment
dealers.
The total of such discounts
and commissions on the man.
moth issue win be $3.50 million,
reducing BY that much the net
return to the sellers. The public
will pay a total Of $657 900. 900.
Foundation to Reinvest
The Ford Foundation intends
to reinvest In other securities 70
that ITS income win no longer
depend solely on earnings OF the
Ford company.
The Foundation is q charitable
trust with the stated aim OF
advancing human welfare"
The Ford Co. has said it's di-
rectors intend to declare q divi-
dend of so cents q share in the
first quarter of this year. II this
dividend should be continued
quarterly g share of stock would
yield the investor $40 annually
Based on a $40 annual yield
the investor would receive a little
more than 81 per cent on his
money put in Ford stock.
Today's filing ended a nation
wide guessing game as to the
Offering price. Most recent
guesses have ranged between $50
land SIS. The figure finally
chosen prices the the new shares
at a level roughly comparable
lin relation to recent earnings
ito General Motors and Chrysler
common stock.
Sees No Quick Riches
President Henry Ford II. In a
recent statement apparently
prompted by the extraordinary
pre-sale demand for a piece OF
the pioneer auto firm, told in
vestors they should not expect
quick riches. He said the In
dustry is hotly competitive and
he is reasonably sure" auto pro-
duction and sales this year will
not match the record of nearly
eight million cars set in 1855
Nevertheless, investment firms
have reported a demand so great
that a top limit Of 200 shares a
person has been set. At the out
set only 100 will be permitted to
a customer. Many investment
firms are rationing the shares at
two or three to the customer.
In Canada. where trading in
the stock on a when issued"
basis is permissible, 1t was being
quoted today at a premium. In
Montreal and Toronto the
shares were being quoted at
SGT .5o bid, $68.50 asked. Such
trading cannot take place in the
United States until the Securi-
ties and Exchange Commission
clears the issue.
The amendment did not esti-
mate Ford Co. profits in the
final quarter Of 1855. Earn
ings in the first nine months
of last year totaling 1912 mil
lion, were equivalent to $685.
a share.
Sales and production spurted
in the final quarter. but pro-
duction schedules now have been
reduced by Ford as well as the
other major producers.
Stable Block Reserved
A stable block Of the 10000
900 shares will be reserved for
Ford dealers and employees, and
nearly 10 per cent will be ear
marked for block sales to invest
ment trusts and' institutional In
vestors. Another block will be
made available to foreign in
vestors.
The shares to be placed on the
market will command go per cent
IF tha unfinU ctrannfb IL, ~, a ~ :