Polycom (NASDAQ:PLCM) 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.