Expedia to Buy Back Up to 42% of Its Common Stock
Travel Web site operator Expedia said Tuesday it plans to buy back up to 42% of its common stock for $3.5 billion.
Expedia will buy back up to 116.7 million shares for no less than $27.50 per share and no more than $30 per share. The stock closed at $25.50 on Monday.
The modified "Dutch tender" offer is expected to start next week and expire the week of Aug. 6 unless extended.
In a Dutch auction, shareholders submit an offer to sell their shares within a range set by the company. The company then determines the purchase price based on the offers submitted.
"With this action, we couldn't be clearer that the management and the board of this company are confident in the value of Expedia and in its long term future," Chairman and Senior Executive Barry Diller said in a statement.