AOL's $600M Stock Buyback, Special Dividend.
The one-time dividend will be payable on Dec. 14 to shareholders of record at the close of business on Dec. 5, the New York-based company said.
Earlier this month, AOL announced plans to repurchase an additional $550 million in stock after its Dutch auction tender offer (http://www.ibtimes.com/articles/357619/20120628/aol-starboard-dutch-auction-tender-shares-proxy.htm) was met with trepidation . The buyback was part of an effort to return proceeds of its $1.1 billion patent sale to Microsoft Corp. (Nasdaq: MSFT) to shareholders and thus limit tax liabilities from the patent sale.
August saw AOL rise to its highest value since the company was spun off from Time Warner Inc. (NYSE: TWX), thanks to a jump in advertising revenue and a substantial one-time gain from (http://www.ibtimes.com/articles/325497/20120409/aol-microsoft-patents-ip-sale-search.htm) its patent sale in April . Since then, the company has managed to return to a profitable second-quarter.
Management beat a proxy fight mounted by Starboard Value Management in early May in part by promising the special dividend.
AOL's statement said it plans to use its previously approved share-repurchase authorization and an incremental $10 million authorized on Aug. 26 for the Barclays deal. As of July 27, the company still had 94 million shares outstanding.
Shares rose 63 cents to $33.55 in midday trading.
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|Publication:||International Business Times - US ed.|
|Date:||Aug 27, 2012|
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