Business Briefing
AUTOMOBILES
UAW sale to shore up health fund
The United Auto Workers union is hoping to raise at least $1.3 billion for its retiree healthcare trust fund by selling all of its 362 million warrants for Ford Motor Co. stock.
The trust will auction the warrants, which were issued in December 2009 as part of contract talks with the union, starting Tuesday morning, Ford said. The automaker and union agreed to set up the trust to help Ford remove retiree healthcare costs from its books while it was in financial trouble in 2007.
Ford will repay $3 billion of debt
Ford Motor Co., the only major U.S. automaker to avoid bankruptcy last year, said it will repay $3 billion of revolving debt after tapping the credit lines to protect against the economic slump.
The repayment, to be made in April, is part of $7.9 billion borrowed as of Dec. 31 from the company’s $8.1 billion in revolving credit, Ford said.
GM’s ’09 report will be late
General Motors Co. said it would be late in filing its 2009 annual report as it worked through accounting issues related to its bankruptcy reorganization last year.
GM said in a filing with the U.S. Securities and Exchange Commission that it would not meet a March 31 deadline to file its 2009 10-K with the regulatory agency.
The automaker said it was still finalizing its fresh start adjustments after the company went through Chapter 11 last year.
COMPENSATION
Amgen’s Sharer gets an 11% boost
Amgen Inc. Chairman and CEO Kevin Sharer’s compensation jumped 11% to just over $15.3 million in 2009, as revenue continued lagging while the biotechnology bellwether focuses on moving a potential blockbuster drug to the market.
Sharer’s salary rose 7.7% to $1.7 million while performance bonuses fell 2.2% to $3.8 million, according to a proxy statement filed with the Securities and Exchange Commission. Other compensation jumped 49% to $791,738, mainly on retirement compensation and perks including company jet travel.
The bulk of his compensation, which is in stock options and restricted stock, rose 16% to just under $9.1 million.
-- times wire reports
