Fords to Keep Stake in Ford

SINGAPORE, Oct 29, 2007; Reuters reported that the prospects for a sale of the Ford family's controlling stake in car marker Ford Motor Co receded as it emerged that Henry Ford's heirs had patched up differences and agreed to wait for the outcome of a radical turnround plan, the Financial Times reported.

Citing people close to the situation, the FT said that, since holding talks with a Wall Street firm in April about their 40 percent voting stake, the family was not planning more discussions with investment bankers in the short term.

The Ford family, through a company spokesman, declined to comment, the paper said. Perella Weinberg also declined comment.

People close to the situation said that after deciding against hiring Perella Weinberg, which specialises in mergers and acquisitions, the family would not invite any investment banking firm to its next gathering, traditionally held every six months in the company's home town of Dearborn, near Detroit, the paper reported.

Its decision will damp rumours that the family would take Ford private in a deal with a buy-out group or look at a merger, the FT said.

Speculation had intensified since Ford plunged to a record $12.6 billion loss last year amid poor sales, rising competition and high healthcare and pension costs.

The apparent retreat from a possible sale will boost the position of Chief Executive Alan Mulally, hired from Boeing Co last year to restore profitability by 2009, the paper added.