Ford to Sell Leasing Unit

05/13/96

Citing an undisclosed source, Reuters reported that Ford Motor Co. will sell its USL Capital Corp. leasing unit within weeks. The deal is expected to divide USL between multiple parties and may be worth up to $1.5 billion.

Reuters' source was quoted as saying, "I think it's likely that Ford will sell the unit in chunks. Talks are ongoing and I think it will be wrapped up in the next few weeks."

BankAmerica Corp. and First Union Corp. have allegedly bid for all or part of USL, and General Electric's Co.'s GE Capital is allegedly interested. All three companies declined to comment.

The sale of USL would follow Ford's recent spin-off and largely successful initial public offering of its Associates First Capital Corp. unit. It would match Ford's strategy to improve the market value of its top financial service group assets.

USL had a first quarter after-tax profit of $47.7 million. USL's six businesses included rail services, fleet services, business equipment financing, transportation, industrial financing and municipal.

Paul Dever -- The Auto Channel