DirecTV Seeks $2.5 Billion for Stock Buyback
By VISHESH KUMAR and SERENA NGMay 8, 2008
DirecTV Group Inc. said it plans to raise $2.5 billion in new debt to buy back stock, a sign that skittish credit markets are on the mend -- at least when it comes to well-performing companies with conservative balance sheets.
Borrowing money to buy back stock is a transaction few, if any, companies have been able to undertake in recent months, since the credit market crunch began.
As part of the buyback plan, DirecTV's biggest shareholder, John Malone's Liberty Media Corp., agreed to cap its voting stake in the company at its existing level of 48%. Without the cap, Liberty's voting stake would have gone past 50%.
Liberty's agreement to cap its voting stake came amid speculation about the company's plans for DirecTV. It suggests Liberty hasn't yet decided what to do with its investment long term, including whether to sell or buy the shares outstanding....
http://online.wsj.com/article/SB121020563951275339.html?mod=2_1569_leftbox
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