The United Auto Workers union is hoping to raise at least $1.3 billion for its retiree health trust by selling all of its 362 million warrants for Ford Motor Co. stock.
The trust got the warrants in December 2009 as part of the UAW's contract with the automaker. The automaker and union agreed to the trust to help the company remove retiree health care costs from its books.
The trust set a minimum price for each warrant at $3.50. Each warrant gives the holder the right to buy a Ford share at $9.20.
The combined $12.70 that a buyer would pay for both the warrant and a share of Ford stock is 8 percent below Ford's closing stock price on Friday of $13.86 a share.
Ford shares were selling at $13.67 a share in premarket trading Monday.
© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.