Printer Friendly

AOL's $600M Stock Buyback, Special Dividend.

Internet company AOL Inc. (NYSE: AOL) announced plans Monday to return $1.1 billion to shareholders through a special dividend of $5.15 per share and also to buy back $600 million of stock under an accelerated stock-repurchase agreement with Barclays Bank PLC.

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.
COPYRIGHT 2012 International Business Times
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2012 Gale, Cengage Learning. All rights reserved.

 
Article Details
Printer friendly Cite/link Email Feedback
Publication:International Business Times - US ed.
Date:Aug 27, 2012
Words:261
Previous Article:Tropical Storm Isaac's Path Across Southern Florida Cancels 1,000 Flights, Keeps Cruise Ships At Sea.
Next Article:Modern-Day 'Lysistrata': Togo Women Call For 'Sex Strike' To Force President To Resign.
Topics:

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters