will return $1.2 billion to stockholders through a special $1 dividend as part of a $3.5 billion restructuring.
The move Monday came a day after Schwab completed its sale of wealth management subsidiary U.S. to Bank of America for about $2.
7 billion after taxes. The San Francisco financial-services company also said Monday it would buy back 84 million shares, or $2.3 billion of its equity, in a modified Dutch auction tender offer and separate stock-purchase agreement with Chairman and Chief Executive Charles Schwab, the company's largest shareholder.
Under the offer, which is to begin Tuesday, the company will pay up to $22.50 a share for its own stock -- 10 percent more than last week's closing price -- through an auction guaranteeing stockholders who sell at least $19.50 a share.
The company's shares closed at $22 Monday on the Nasdaq Stock Market, up $1.48, or 7.21 percent.
Schwab had said it would consider buying back stock and paying a special dividend to put the proceeds of the $3.3 billion U.S.
Trust sale to work. Del.icio.
us | Digg it | RSS will return $1.2 billion to stockholders through a special $1 dividend as part of a $3.5 billion restructuring.
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