Ford Completes Hertz Sale, Sees Pretax Gain

DETROIT -- Ford Motor Co. has completed the sale of Hertz Corp. to a private equity group, and plans to report a fourth-quarter pretax gain from the transaction of $1.1 billion to $1.3 billion, according to Reuters.

Under the terms of the agreement, reached last September, Ford received $5.6 billion in cash from a group composed of Clayton Dubilier & Rice, The Carlyle Group and Merill Lynch Global Private Equity for the sale of 100 % ownership interest in Hertz.

The cash infusion comes as Ford’s core automotive unit is losing money and the company continues to face a deepening financial crisis. Upon the announcement, shares of the Detroit-based automaker rose more than 2% on the New York Stock Exchange.

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