Polycom has offered up $250 million (£156 million) of its stocks to purchase.
The video conferencing and telepresence company has commenced a ‘Dutch Auction’ for the stocks. This means shareholders will be able to say how many stocks they want to buy and at what price they want to pay within the price range.
The stocks represent 14.7 per cent of the firm’s outstanding common stock. Those that are purchasing the stock will only be able to do so at a price that is no less than $10.00 (£6.27) per share and no more than $11.50 (£7.22). All stocks must be purchased by 5pm (New York City time) on October 30th of this year.
However, this may be extended if Polycom wishes to do so.
Stockholders have not been advised by Polycom or its board directors about whether they should tender their shares or not and about which price they should choose if they decide to proceed, according to 4-traders.com. The directors and executive officers of Polycom have already told the company that they don’t plan to tender their common shares in the tender offer.
According to dailyfinance.com, the company currently has approximately 169.6 million shares outstanding and its stock is being valued at $10.93 (£6.86) per share.