Yahoo!: starts tender offer for own shares.

(CercleFinance.com) - Yahoo! is going to provide liquidity to its shareholders, with a Dutch auction tender offer to repurchase three billion dollars worth of its own stock.


Under the terms of the deal, which will expire on 13 June, Yahoo! shareholders will have the opportunity to tender their shares at a price at least 37 dollars.

In details, the price paid will be equal to the "Alibaba VWAP" (daily volume-weighted average price for an Alibaba ADS), times by certain multiples.

Based on Alibaba's VWAP of 120.9 dollars last night, the highest price payable in the tender offer would be 50.79 dollars per share, which represents a premium of approximately 1.9% to Yahoo's last closing price.

Shares of Yahoo! were up slightly (+0.6%) at 50.15 dollars in pre-market trading on the New York Stock Exchange today.

Yahoo! said the purpose of the tender offer is to provide liquidity to shareholders, who will be forced to sell their shares at or before the end of the pending sale of Yahoo's operating business to Verizon.

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