Corning In $1.25 Bln. Accelerated Share Repurchase Deal With Citibank

(RTTNews) - Specialty glass and ceramics company Corning Inc. (GLW) said Tuesday it has entered into an accelerated share repurchase agreement with Citibank, N.A. to repurchase $1.25 billion of the company's common stock.

The accelerated share repurchase, or ASR, is part of Corning's $2 billion share repurchase program made effective concurrent with the closing of its acquisition of Samsung Corning Precision Materials Co. Ltd. (now Corning Precision Materials).

Under the terms of the ASR, Corning has agreed to repurchase in total $1.25 billion of its common stock from Citibank, with an initial delivery of about 52.5 million shares based on current market prices.

The final number of shares to be repurchased will be based on Corning's volume-weighted average stock price during the term of the transaction.

The program is expected to be completed in the second quarter of 2014. The company expects to finance the ASR with cash on hand.