Polycom Launches Dutch Auction Share Buyback Program
Polycom is about to shell out up to $250 million of its capital to repurchase its own common stock. The company has initiated a so-called "Dutch auction" to effect the buybacks. In such a tender, shareholders wishing to participate specify how many shares they would like to offer and at what price they are willing to sell them, within a certain range specified by the tendering party. The latter then chooses the offers it will accept. In this case, the price range is $10.00-$11.50 per share, and Polycom's spending limit is $250 million.
The auction will expire at 5 p.m. ET on Oct. 30, unless the company decides to extend the tender.
At the moment, Polycom has 169.6 million shares outstanding, and its stock most recently closed at $10.93 per share.
The article Polycom Launches Dutch Auction Share Buyback Program originally appeared on Fool.com.Fool contributor Eric Volkman has no position in Polycom. The Motley Fool recommends Polycom. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.