Join Date: Feb 2001
Location: The Hills of North Georgia,USA
Ford Motor looks into IPO issue
Reuters / December 10, 2002
NEW YORK -- Ford Motor Co.'s board this week will consider a shareholder's demand that the auto giant recover from its chief, William Clay Ford Jr., profits he made from shares of an initial public offering, The Wall Street Journal reported on Tuesday.
The House Financial Services Committee disclosed in October that Goldman Sachs Group Inc. allocated 400,000 shares of the securities firm's IPO in itself to Ford in May 1999, the newspaper said.
In a Nov. 13 letter by a New York law firm on behalf of a holder of 100 Ford shares, the shareholder demands a return of the IPO profits, saying Ford's acceptance of the shares, the largest allotment to any individual investor in the IPO, "constitutes a usurpation of a corporate opportunity belonging to the company," the newspaper said.
The Journal, in its online edition, said the letter also states that: "No such allocation of shares in the Goldman IPO would have occurred but for Mr. Ford's position...and the actual or potential business relationship between the company and Goldman."
A Ford Motor spokesman, Jim Vella, told the WSJ that the company had received an "inquiry" from the shareholder and that the board would follow its normal guidelines, adding that "it's important to note that this was a personal business transaction, and totally unrelated to company business."
My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.
My next Ford.....