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FBR to buy back up to 1.25M in shares

ARLINGTON, Va. (AP) -- Shares of FBR & Co. rose Tuesday after the investment bank opened a modified "Dutch auction" tender offer to buy up to 1.25 million shares, or about 10.6 percent, of its outstanding common stock.

The stock will be purchased for between $22.50 and $23.50 per share. The tender offer expires on June 18, unless extended.

In a Dutch auction, shareholders can decide how many shares they want to tender and at what price within a specified range. Based on that information, the company then determines the lowest price per share within the range that lets it buy the amount of shares that it wants.

FBR shares rose $1.39, or 6 percent, to $23.39 in afternoon trading.