AOL Initiates ‘Dutch Auction’ Tender Offer To Repurchase $400 Million Worth Of Shares

Posted on Jun 28 2012 - 1:25pm by Editorial Staff

As reported earlier this week, AOL announced today that it has commenced modified “Dutch auction” tender offer to repurchase share of its common stock up to a total purchase price of $400 million. The move will bring the total amount AOL intends to return to shareholders in 2012 to approximately $1.1 billion. The proposed tender offer terms allows AOL’s shareholders the opportunity to tender some or all of their shares at a price within the range of $27.00 to $30.00 per share.

“Today’s announcement is a necessary first step in the return of capital to our shareholders,” said Artie Minson, CFO of AOL and President of AOL Services “Over the course of the remainder of this year, we will continue the full return of the patent proceeds as well as the $40 million left in our current repurchase authorization and we will do so in a manner which we believe will drive value for shareholders while preserving the value of AOL’s substantial tax assets.”

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Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.