NEW YORK – H&R Block said Wednesday that it plans to buy back up to $1.5 billion of its stock from its shareholders in a process known as a modified Dutch auction.
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The tax preparer said it will buy stock for between $32.25 per share and $37 per share. Shareholders can offer their stock for sale until Oct. 2.
In a Dutch auction, the shareholders decide how many shares they want to sell and at what price, within a certain range. After that, the company determines the lowest per-share price within the range that lets it buy the amount of shares that it wants.
Late Tuesday, the company reported better-than-expected results for its fiscal first quarter.
Shares of H&R Block, Inc., based in Kansas City, Missouri, rose $2.25, or 6.8 percent, to $35.20 in midday trading Wednesday.