Shares of Gleacher (GLCH) soared nearly 25% Wednesday after the investment bank said it would commence a modified tender offer to purchase of up 10 million of its outstanding shares.
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The deal, also known as a Dutch auction, allows the company to buy up to 7.84% of its outstanding common stock at a price not less than $1.30 and not more than $1.55 a share.
Under that auction, shareholder will be able to indicate how many shares and at what price they wish to tender their shares within the price range. The company will determine the lowest price per share within the range that allows it to buy up to 10 million shares of its common stock, or a lower amount depending on the number that are tendered.
Stockholders who tender their shares will receive the pre-determined price per share in cash, without interest, after the expiration of the offer period.
The offer will expire on Nov. 2 unless the company chooses to extend it.