In dec 13 they pledge to apply a 500 mll buyback program to be acomplished in year and a half ,now its may 14 and not a word or comment about it,Stock price has wiggle in an erratic way . Would anyone care to solve this mistery...Thks.
They just called the 2035 convertible notes, so looks like they are going to sacrifice short term share price to take advantage of the low interest rate environment. I'm expecting some dilution from converted shares, feel free to correct me if I'm wrong guys.
If these bond are called back by Agco then it would mean they will not be converted into common stock ,so there will be no dilution at all.On the contrary diluted EPS will be higher since Agco is getting rid of convertibles .( a potential dilutive instrument if exercized ).
They (agco) probably thinks Share Price is low and wants to avoid potential dilution by convertible note holders-besides as you said interest environment is still low ,so they could find cheaper sources of funds if needed.
Always read the 10Q when it comes out: During the three months ended March 31, 2014, the Company entered into accelerated repurchase agreements ("ASRs") with a financial institution to repurchase an aggregate of $290.0 million of shares of the Company's common stock. The Company has received approximately 4,178,915 shares during the three months ended March 31, 2014 related to these ASRs. All shares received under the ASRs were retired upon receipt, and the excess of the purchase price over par value per share was recorded to "Additional paid-in capital" within the Company's Condensed Consolidated Balance Sheets. Of the $550.0 million in approved share repurchase programs, the remaining amount authorized to be repurchased is approximately $241.4 million.