Bemis Company Enters into Accelerated Share Repurchase Agreement to Purchase Four Million Shares of Bemis Common Stock
Bemis Company, Inc. (NYSE: BMS) announced today that it has entered into an accelerated share repurchase agreement with Goldman, Sachs & Co. (“Goldman”) for the repurchase of four million shares of Bemis common stock. This transaction will substantially exhaust the existing authorization for share repurchase approved by Bemis’ Board of Directors.
Under the terms of the accelerated share repurchase agreement, Goldman will deliver the full number of shares to be repurchased on August 3, 2007. Goldman will borrow the shares and, over a period not to exceed six months, will repurchase shares in the open market to cover its position with the share lenders. Upon completion, the accelerated share repurchase is subject to a price adjustment. At that time, Bemis may receive, or be required to pay, a price adjustment based on the adjusted volume weighted average price of Bemis common stock during the repurchase period. If Bemis is required to make a payment, it may elect to settle the price adjustment in shares or in cash. The earnings per share impact of this transaction has been considered in management’s earnings per share guidance announced in its second quarter earnings press release earlier today.
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