On April 14, 2000, Ford Motor Co. announced a shareholder Value Enhancement Plan (VEP) to
significantly recapitalize the firm’s ownership structure. F
ord had accumulated $23 billion in cash
reserves, close to the company’s largest ever cash position and significant relative to Ford’s $57billion equity market capitalization. Under the VEP, Ford would return as much as $10 billion of thiscash to shareholders. In exchange for each share currently held, the plan would give stockholdersone new share plus the choice of receiving $20 either in cash or additional new Ford common shares.Ford also announced that it would distribute ownership of its Visteon Corp. parts unit toshareholders.