Dutch auction drives Ikon Office Solutions stock up 18%
Published November 21st, 2007
Ikon Office Solutions said late Tuesday that it will buy back $500 million of its common stock.
The plans include selling $295 million of the total in a Dutch auction at between $13 and $15 a share, which would be a premium over Tuesday’s closing price of $10.62. Ikon shares were trading up 18 percent Wednesday at $12.52.
Ikon shareholder Steel Partners II, which owns about 10 percent of the company, said it supported the stock buyback plans.
Last month, Ikon agreed to provide Steel with confidential information in exchange for the New York fund’s agreeing to not try to take over Ikon or its board of directors for six months. Ikon announced Tuesday that Steel Partners has now agreed “to refrain from taking certain actions with respect to its investment in Ikon through May 2009, subject to completion of the pending repurchase plan.”
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