- Now an activist target, American Capital (NASDAQ:ACAS) responds, hiring Goldman Sachs to assist with a strategic review of all alternatives, including a sale of the company or various business lines.
- The just-launched $300M-$600M buyback program is increased to $600M-$1B. Purchases will only be made at prices less than 85% of net asset value (Sept. 30 NAV was $20.44; yesterday's close of $13.90 was a 32% discount to that). The company expects to complete the buyback by June.
- Results of the strategic review are anticipated no later than Jan. 31.
- Source: Press Release
- ACAS +6.4% premarket to $14.79.
- Previously: American Capital becomes activist target; up 5% premarket (Nov. 16)