The Campbell Soup Company has entered into two share repurchase agreements with an affiliate of Lehman Brothers to repurchase approximately US$600m of Campbell stock.
Under the first deal, Campbell has purchased around 8.3m shares for $300m. The purchase price is subject to an adjustment based on the volume weighted average price of Campbell stock during a period following the execution of the first agreement. This adjustment is expected to be settled in the fourth quarter of fiscal 2007.
Under the second agreement, Campbell will purchase an additional $300m of its stock, with Lehman delivering an initial 6.3m shares. Lehman is expected to deliver further shares based in the volume weighted average price during the term of the second agreement.
The deals are part of the $620m share repurchase programme authorised by the company’s board in August. This plan is in addition to a three-year $600m share repurchase plan announced in November 2005 and Campbell’s practice of buying back shares to offset those issued under incentive compensation plans.