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News > Deals
Ford sets spinoff terms
June 13, 2000: 3:26 p.m. ET

Shareholders to receive one share of Visteon for every 7.64 Ford shares held
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NEW YORK (CNNfn) - Ford Motor Co. announced on Tuesday the terms for the spinoff of its Visteon unit, putting the deal's worth at about $2.8 billion.

Under the terms, Ford shareholders will receive one share of Visteon Corp., the company's auto parts division, for approximately every 7.64 shares of Ford common and class B stock they own. Ford employees who are shareholders as part of the company's employee savings program will receive cash.

Based on Visteon's closing price Monday of 17-9/16, the deal is worth about $2.8 billion, or $2.30 per Ford share. Without the employee cash payments the spinoff would total about $2.3 billion, or $1.89 per share.

The actual value of the deal will be determined by the closing price on June 28 - the date when Ford will distribute the 130 million Visteon shares to its shareholders.

With 81,000 employees and $19 billion in annual sales, Visteon will be one of the biggest players in the auto parts business. Ford has mulled a spinoff for over three years, deciding against an initial public offering like General Motor's (GM: Research, Estimates) parts division, Delphi (DPH: Research, Estimates).

graphicAs a way of determining the price of Visteon shares, the unit's stock is now trading on the New York Stock Exchange as a "when-issued" stock, which will finish trading on the distribution date. The stock began trading on June 8 at $11.85.

In SEC filings, Ford (F: Research, Estimates) originally estimated the value of the spinoff to be about $1.5 billion. Back to top

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.