01.04.2008 10:19 am
Kellwood enters into share repurchase agreement
Kellwood Co., which has twice rejected a takeover offer from Sun Capital Securities Group, has entered into a $80 million accelerated share repurchase agreement with Bank of America that will allow it to buy about 18 percent of its outstanding shares based on the company’s current stock price.
The Town and Country-based apparel marketer had said in November that it would use proceeds from the sale of its Smart Shirts division to repurchase shares and reduce debt.
The repurchase program is expected to take up to nine months to complete.
Kellwood has repurchased nearly 1.1 million shares of its comon stock for about $19.8 million under its current repurchase authorization passed by its board in September 2007.
