WebMD to buy back shares from Carl Icahn

Reuters

Oct 21 (Reuters) - WebMD Health Corp, a healthinformation provider, will buy back all of the shares in thecompany beneficially owned by activist investor Carl Icahn andaffiliates, the company said on Monday.

WebMD said it would pay $32.08 per share, the stock'sclosing price on Friday, to buy back about 5.5 million shares.It will pay $177.3 million in total to buy back the shares, thecompany said in a statement.

Icahn and his affiliates held a stake of about 12 percent inWebMD as of Sept. 17, according to the latest regulatory filing.

WebMD, which operates medical websites providing informationon health and diseases, said it would fund the buyback from itsown cash and cash equivalents.

The deal is expected to be completed on Monday.

In July, WebMD reported its first profit in six quarters dueto higher advertising revenue from its public websites.

After the buyback, WebMD expects to have about $550 million in cash and cash equivalents and $652 million in convertiblenotes outstanding.

Shares of the company were up slightly at $32.10 inpremarket trade on the Nasdaq.

Rates

View Comments (0)