What does this mean? What's the deal with agreeing to buy back stock at $40.76? Are they buying six million shares of BBT owned by Bear Stearns or are they retaining Bear Sterns to help them buy the six million shares? And why are they doing this? Is it to restructure their balance sheet? To bolster their stock price in anticipation of beginning their shopping for acquisistion candidates? Hope someone can shed some light on this for me. Thanks and best wishes. The WSJ story appears below: BB&T In Accelerated Shr Buyback Pact With Bear Stearns
DOW JONES NEWSWIRES October 25, 2005 11:14 a.m.
WASHINGTON -- Financial holding company BB&T Corp. (BBT) said Tuesday it entered into an accelerated share buyback agreement with Bear Sterns International Ltd. to help BB&T buy 6 million shares of outstanding stock.
The purchase price for shares of the Winston-Salem, N.C.-based company was agreed upon at $40.76 a share on Monday. BB&T shares recently traded at $41.37 each.
-By Ed Welsch, Dow Jones Newswires; 202-862-1356; email@example.com
Looks like they have set a fixed price for the stock (bottom side) for the time being. Anyway you look at it if you want to sell you know you can get $40.76. (Stil...time to take your profits.$7 + profit per share on the 10 shares puts a few BBQs on the table.)