Halliburton to Buy Back 68 Million Shares for $3.3 Billion

Halliburton (NYSE: HAL  ) today announced the results of its $3.3 billion modified "Dutch auction" tender offer to repurchase shares that was originally commenced on July 25 and expired last night. There were a total of approximately 100.2 million shares that were offered in the tender.

As a result of the tender offer and response, Halliburton said it expects to repurchase 68 million shares of common stock at $48.50 per share, for a total buyback of $3.3 billion excluding related fees and expenses. That total will represent 7.4% of its outstanding common shares. As of this writing, shares were trading at $48.50, which represented a roughly 42% gain over last year.

In a Dutch auction, shareholders can decide how many shares they want to sell and at what price, within a specified range. The company then determines the lowest per-share price within the range that lets it buy the amount of shares that it wants.

Halliburton has also secured its right to buy back additional shares of its common stock on the open market contingent on market conditions. However, Halliburton is restricted by securities laws from purchasing any additional common stock until Sept. 6. That decision will be dependent on "the market price of the shares, the final results of the tender offer, Halliburton's business and financial position and general economic and market conditions," the company said.

In July, Halliburton announced it had repurchased 23 million shares for a total cost of $1 billion throughout the second quarter of 2013.

-- Material from The Associated Press was used in this report.

link


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2607799, ~/Articles/ArticleHandler.aspx, 4/16/2014 9:08:21 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement