Tektronix Inc is planning to hold a Dutch auction to spend up to $380m more on its own shares. The shares closed just before the announcement at $34 even, and Tektronix is inviting holders to tender shares at anywhere between $35 and $40; it will buy at least 6m if enough shares are tendered. It has $200m in the bank for the exercise, and will borrow the balance: it says it is making the move because it reckons that buying its own shares is the best use for its cash balances and borrowing power. It has already paid $75m for 2.1m shares out of a founder’s estate, and after that had 37m shares outstanding. The exercise won’t come free, and the costs will lead Tektronix to reporting a charge that will lead to a loss for its fiscal fourth quarter to May 30. At the pre-tax level it expects to report $15m to $25m against $10.5m last year.
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