Tuesday, July 3, 2007
Charles Schwab Corp. plans to distribute $3.5 billion to its shareholders in a stock buyback and one-time dividend. It will pay up to $22.50 per share (about 10% above market price) -- the price to be set by auction -- for 84 million shares owned by the public and then purchase up to another 18 million shares from Charles Schwab to maintain his percentage ownership at 18%. It will also pay a $1 per share dividend. The company recently sold its wealth management company for $3.3 billion. See NYTimes, Schwab Plans Buyback and Dividend; WSJ, From Schwab, a $3.5 Billion Hint.