The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Sun, 04 Jul 2021 16:07:43 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 Questions Surrounding Share Repurchases https://corpgov.law.harvard.edu/2013/03/14/questions-surrounding-share-repurchases/ https://corpgov.law.harvard.edu/2013/03/14/questions-surrounding-share-repurchases/#respond Thu, 14 Mar 2013 13:35:43 +0000 http://blogs.law.harvard.edu/corpgov/?p=41789?d=20150113104906EST Posted by Peter Atkins, Skadden, Arps, Slate, Meagher & Flom LLP, on Thursday, March 14, 2013
Editor's Note: Peter Atkins is a partner of corporate and securities law matters at Skadden, Arps, Slate, Meagher & Flom LLP. This post is based on a Skadden, Arps memorandum by Phyllis Korff, Michael Zeidel, Stacy Kanter, Michael Schwartz, Donnie Clay, and Yossi Vebman; the full text, including footnotes, is available here.

In recent months, a number of companies have repurchased or announced plans to repurchase their shares. Management and boards of directors overseeing companies with significant cash stockpiles yet finding fewer mechanisms to boost earnings may soon need to decide whether or not a share repurchase is the most productive use of their cash. This post addresses the questions surrounding share repurchases that companies should consider as they evaluate the advantages, disadvantages, legal implications and strategic considerations of share repurchases.

Overview

What are the ways a company can repurchase its shares?

There are four principal ways a company can repurchase its shares, all of which are discussed below:

(1) open market purchases;

(2) issuer tender offers;

(3) privately-negotiated repurchases; and

(4) structural programs, including accelerated share repurchase programs.

Most share repurchases are effected over time through open market purchases. These are often referred to as share repurchase programs or plans.

(more…)

]]> https://corpgov.law.harvard.edu/2013/03/14/questions-surrounding-share-repurchases/feed/ 0