Sybase begins stock buyback as part of agreement with Sandell Asset Management

By Lisa Kerner

Charlotte, N.C., March 10 - Sybase, Inc. began its modified Dutch auction tender offer to purchase up to $300 million, or 11.6%, of its common stock at a price range of $28 to $30 per share.

The offer, first announced on Feb. 26, is set to close at 5 p.m. ET on April 7 unless extended.

Following the completion of the offer, Sybase will have a remaining share repurchase authorization of $82.9 million.

It was previously reported that the self-tender is part of an agreement between Sybase and Sandell Asset Management Corp. to avoid a proxy contest at Sybase's 2008 annual meeting on April 15.

The investor had urged Sybase to incur debt to conduct a larger stock buyback and said it planned to nominate three directors for election to the company's board at the 2008 annual meeting.

The Dublin, Calif., software company's directors and executive officers do not plan to tender any shares in the offer, according to a company news release.

Merrill, Lynch, Pierce, Fenner & Smith Inc. is the dealer manager for the offer, and the depositary is American Stock Transfer & Trust Co. Innisfree M&A Inc. (877 456-3463) is the information agent.

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