Home Depot accepts more than 289 million shares in tender offer, updates EPS guidance

By Lisa Kerner

Charlotte, N.C., Sept. 10 - Final results show that a total of 289,331,314 shares were validly tendered at a price of $37 per share, or a total cost of $10.7 billion, in the Home Depot, Inc.'s modified Dutch auction tender offer ended Aug. 31.

The shares represent 14.6% of the shares outstanding and include the 250,000,000 shares the Home Depot initially offered to buy and 39,331,314 additional shares the company elected to purchase under terms of the offer.

With completion of the tender offer, the Home Depot now has some 1.69 billion shares outstanding.

"We are pleased to successfully complete the tender offer, which brings us almost halfway to fulfilling our $22.5 billion recapitalization plan," chairman and chief executive officer Frank Blake said in a company news release.

"We continue to evaluate financial market conditions and will execute the rest of the plan as soon as practicable."

Home Depot updated its guidance for fiscal 2007 following the offer's close, with diluted earnings per share from continuing operations expected to decline 7% to 9%, instead of the previously stated 12% to 15%. The company also projects that outstanding shares will be reduced by about 165 million and 290 million shares in the third and fourth quarters of fiscal 2007, respectively.

Home Depot is an Atlanta-based home improvement retailer.

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