SAN FRANCISCO, Aug. 1 /PRNewswire-FirstCall/ -- The Charles Schwab
Corporation announced today the preliminary results of its modified "Dutch
Auction" tender offer, which expired at 12:00 midnight, Eastern Time, on
Tuesday, July 31, 2007. Based on the preliminary count by the depositary
for the tender offer, Schwab expects to accept for payment approximately 84
million shares of its common stock at a price of $20.50 per share for a
total cost of approximately $1.7 billion. The preliminary proration factor
for the offer is approximately 90 percent.
As previously disclosed, the company also agreed to purchase shares
from Charles R. Schwab, the company's Chairman and Chief Executive Officer
and its largest stockholder, and certain additional stockholders whose
shares Mr. Schwab is deemed to beneficially own. The number of shares to be
purchased is calculated to result in Mr. Schwab maintaining the same
beneficial ownership interest in the company's outstanding common stock
that he currently has. Based on the preliminary count of shares tendered in
the tender offer, the company expects to purchase from Mr. Schwab and those
other stockholders approximately 18 million shares at a price of $20.50 per
share for a total of approximately $369 million.
The number of shares to be purchased and the price per share under both
the tender offer and the agreement with Mr. Schwab are preliminary. Final
results will be determined subject to confirmation by the depositary of the
proper delivery of the shares validly tendered and not withdrawn. The
actual number of shares to be purchased and the price per share will be
announced following the completion of the confirmation process. Payment for
the shares accepted for purchase will occur promptly thereafter.
Shareholders and investors who have questions or need information about
the tender offer may contact D.F. King & Co., Inc. at 1-800-659-6590.
About Charles Schwab
The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of
financial services, with more than 300 offices and 6.9 million client
brokerage accounts, 1.1 million corporate retirement plan participants,
177,000 banking accounts, and $1.4 trillion in client assets. Through its
operating subsidiaries, the company provides a full range of securities
brokerage, banking, money management and financial advisory services to
individual investors and independent investment advisors. Its broker-dealer
subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org),
and affiliates offer a complete range of investment services and products
including an extensive selection of mutual funds; financial planning and
investment advice; retirement plan and equity compensation plan services;
referrals to independent fee-based investment advisors; and custodial,
operational and trading support for independent, fee-based investment
advisors through its Schwab Institutional division. The Charles Schwab
Bank, N.A. (member FDIC) provides banking and mortgage services and
products. CyberTrader(R), Inc. (member SIPC, http://www.sipc.org) is an
electronic trading technology and brokerage firm providing services to
highly active, online traders. More information is available at
http://www.schwab.com.
SOURCE Charles Schwab
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Related links:
http://www.schwab.com
CONTACT:
Media, Greg Gable, +1-415-636-5847, or
Investorsa-Analysts, Rich Fowler, +1-415-636-9869, both of
Charles Schwab
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