Overclocker

Ford stock may be taken private as Chairman Bill Ford (pictured) and his executive leadership continue efforts to turn the company around.

Date posted: 08-25-2006

DEARBORN, Mich. — Based on Ford's depressed stock price, it would cost a potential investor a modest $15 billion or less to buy the Ford Motor Company and take it private.

That's less than one-tenth the value of rival Toyota Motor Co. and only a quarter of DaimlerChrysler's market capitalization.

And guess who is interested in a takeover? The Fords themselves.

Ford's stock appears to be so undervalued by Wall Street that the Ford family reportedly is getting serious about raising the money to take the company private, as Chairman William Clay Ford, Jr. and his executive team attempt to restructure — and, they hope, revitalize — the struggling automaker.

The Ford family owns about 5 percent of the company's outstanding shares but controls 40 percent through a separate Class B stock.

Bill Ford also had his third conversation with celebrity CEO Carlos Ghosn, who heads the Renault-Nissan alliance, according to reports originally in The Wall Street Journal. Ford reportedly told Ghosn that he'd be interested in talking if Ghosn's talks with General Motors Chairman Rick Wagoner fall apart.

Ford recently hired former Goldman Sachs investment banker Kenneth Leet to help it explore a range of options, including the possible sale of Jaguar, Land Rover and other brands.

What this means to you: If the Ford family elects to take the company private — and persuades Carlos Ghosn to take the reins — Wall Street could be singing a new tune within two years. But what a jolt it will be for the Ford name and all who love it.

Soruce: http://www.edmunds.com/insideline/do...shCache=true#2