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Halliburton to Buy Back 68 Million Shares for $3.3 Billion

Friday - 8/23/2013, 9:18am  ET

Halliburton 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.

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This article was originally published as Halliburton to Buy Back 68 Million Shares for $3.3 Billionon Fool.com

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