Ford Shareholders OK Dividend Plan

Ford Motor Co. shareholders approved a special dividend that will give them new Ford shares plus about $6 billion in cash, over the objections of some large institutional investors who preferred a stock buyback. Ford, which has spent about $10 billion on acquisitions in 18 months, has been pressed by investors for a buyback or other moves to boost a stock that has fallen 9.1% this year. Some 86% of shareholders approved the plan, defeating large investors who said the Ford family could unfairly benefit by keeping 40% of voting power even if they reduced common stock holdings. Investors will exchange their common or Class B stock for new shares plus either $20 cash for each share, an additional 0.748 share, or a combination of cash and stock equaling $20. Ford had limited the cash payout to $10 billion but actually will distribute less than that because a larger percentage than expected chose to take additional shares. Ford said it now expects to distribute about $6 billion in cash and have 1.9 billion outstanding common and Class B shares. Ford fell 31 cents to close at $46.56 on the NYSE.