Hewitt begins Dutch auction tender offer

By Lisa Kerner

Charlotte, N.C., Aug. 7 - Hewitt Associates, Inc. will begin a modified Dutch auction tender offer on Wednesday for up to 15.625 million shares, or some 14%, of its outstanding class A common stock. The offer is set to expire at midnight ET, Sept. 5.

The purchase price for the shares will be between $28.75 and $32.00 each, and the offer is subject to proration.

"We're pleased that our continued strong cash position and expected future cash flows afford us the opportunity to return cash to our stockholders," chairman and chief executive officer Russ Fradin said in a company news release.

"The tender offer is an efficient mechanism for returning the cash, and the $500 million amount allows us the flexibility for significant further reinvestment in the business, including making acquisitions where appropriate, and funding the right internal projects to accelerate our growth."

Goldman, Sachs & Co. is the dealer manager for the offer, and Georgeson, Inc. is information agent.

Hewitt is a human resources outsourcing and consulting services company in Lincolnshire, Ill.

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