Activision Blizzard's announced first results of its self-tender offer, by which it planned to buy back 146,500,000 shares at $27.50 a pop. The offer ran out last night.
The total amount of shares sold back to the firm is a little shy of the target, at 86,000. The total cost of the exchange is approximately $2.37 million.
Guess people aren't that dumb. Press release after the break.
Activision Blizzard Announces Preliminary Results of Self-Tender Offer
SANTA MONICA, Calif., Aug 13, 2008 /PRNewswire-FirstCall via COMTEX News Network/ — Activision Blizzard, Inc. (Nasdaq: ATVI) today announced the preliminary results of its tender offer to purchase up to 146,500,000 shares of its outstanding common stock at a price of $27.50 per share, net to the tendering stockholders in cash, less any applicable withholding taxes and without interest. The tender offer expired at 5:00 p.m., New York time, on Wednesday, August 13, 2008.
Continental Stock Transfer & Trust Company, the depositary for the tender offer, has advised Activision Blizzard on a preliminary basis that approximately 86,000 shares of common stock were properly tendered and not properly withdrawn in the tender offer, including shares that were tendered pursuant to notices of guaranteed delivery. Based on this preliminary count by the depositary, Activision Blizzard expects to purchase approximately 86,000 shares of its common stock at a purchase price of $27.50 per share for a total cost of approximately $2.37 million, excluding fees and expenses relating to the tender offer. Given that the preliminary number of shares tendered is less than the number of shares that Activision Blizzard offered to purchase, no proration will be required.
The results announced today are preliminary and subject to verification by the depositary. The final number of shares to be purchased will be announced as soon as practicable following completion of the verification process and confirmation by the depositary of the proper delivery of all shares tendered, including shares tendered pursuant to notices of guaranteed delivery. Payment for the shares accepted for purchase in the tender offer will occur promptly thereafter. Activision Blizzard intends to fund the purchase of shares in the tender offer with available cash on hand.
The tender offer was agreed to be made in connection with the business combination between Activision, Inc., now known as Activision Blizzard, Inc., and Vivendi Games, Vivendi's interactive entertainment business — which includes Blizzard Entertainment's(R) World of Warcraft(R). Under the terms of the business combination agreement, Activision Blizzard agreed to commence the tender offer within five business days after the closing of the business combination, which occurred on July 9, 2008. In accordance with the business combination agreement, the purchase price per share for the tender offer was equal to the price per share that Vivendi paid for the stock it purchased from Activision.
Questions regarding the tender offer should be directed to Morrow & Co., LLC, the information agent for the tender offer, at (800) 245-1502 (toll- free).