Ford buys Volvo

[Steve Albrecht <albrecht@xxxxxxxxx>]

This came over an internet news feed I receive during the day...

DEARBORN, Mich. (Reuters) - Ford Motor Co. stepping up the pace of
global
auto consolidation, said Thursday it will pay $6.45 billion in cash for
the car division of Sweden's AB Volvo to broaden its luxury car range
and
reinvigorate the Swedish brand. 

``We have huge potential to expand Volvo car,'' Ford Chief Executive Jac
Nasser told a news conference in Sweden. ``It's our intention to nurture
and be a good custodian for Volvo cars.''

Ford won Volvo following a bidding war that also involved Fiat Spa and
Volkswagen AG . Analysts said a rival bid is possible but unlikely given
the unanimous support Volvo's management and board have voiced for the
sale.

Ford officials said the $6.45 billion price tag is equal to 15 times
earnings, about the same multiple on some other European automakers.
Although cash-rich Ford finished 1998 with nearly $24 billion in the
bank, some analysts questioned the price Ford paid.

Just FYI
Steve Albrecht
Golden Gate Chapter
'95 540

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