Billionaire Kirk Kerkorian's offer to buy 20 million Ford shares at a premium was fifty times oversubscribed.
Mr Kerkorian's offer to pay $8.50 a share drew interest from investors offering to sell 1.02bn shares - half the company's stock.
With US consumer spending slowing sharply and fuel prices at record highs, carmaker Ford's near-term prospects look grim, say analysts.
The offer has looked increasingly attractive as Ford shares have fallen.
On Tuesday, Ford shares fell 3.8% to $6.1 in New York.
Mr Kerkorian launched the cash tender offer on 9 May for the additional shares, which will take the stake controlled by his investment company Tracinda up to 5.5%.
When the offer was launched, the premium was only slightly above Ford's closing share price on 8 May of $8.20.
"The offer was a modest premium to (Ford) shares when originally launched, but the share price has retreated over 20% since then," wrote Efraim Levy, an analyst at Standard & Poor's.
Tough times
The company's shares have slid since then, particularly after it abandoned its goal of making its loss-making North American business profitable in 2009.
Ford has said it will cut more jobs and production this year as demand for large gas-guzzling cars falls and production costs soar.
It has sold its luxury brands Aston Martin, Jaguar and Land Rovers to raise cash.
But its finances remain under pressure as consumer spending, the engine of the US economy, stalls and Americans opt for smaller, more fuel-efficient cars.
Argus research analyst Kevin Tynan said that the price Mr Kerkorian was offering through his investment firm Tracinda was clearly the main reason behind the oversubscription, but also that shareholders "didn't see the stock going higher".
A Ford spokesman said the investor response was "understandable given that the offer represented a significant premium" over Ford's current share price.
But he added that the firm remained focused on "on executing our plan to transform Ford into a lean global enterprise delivering profitable growth for all".
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