Dutch Auction

RECENT NEWS
Benzinga  Aug 21  Comment 
Herbalife Ltd. (NYSE: HLF) shares are trading higher by $6.07 at $68.02 in Monday's session. There are two catalysts behind the rally. First of all, the company has announced a modified Dutch Auction for $600 million in common shares between...
Reuters  Jan 30  Comment 
* Fairfax announces cash tender offer for senior notes by way of modified dutch auction
Benzinga  Nov 21  Comment 
Resources Connection, Inc. (NASDAQ: RECN) recently announced preliminary results of its modified "Dutch auction" tender offer to buy up to 6 million shares at a price not greater than $16 nor less than $13.50. The stock closed at $15.90 on the...
newratings.com  Nov 3  Comment 
WASHINGTON (dpa-AFX) - Actua Corp. (ACTA) said it intends to commence a modified "Dutch auction" tender offer to repurchase for cash certain of its outstanding shares of common stock for an aggregate purchase price of no more than $80.0...
Benzinga  May 10  Comment 
Monster Beverage Corporation (NASDAQ: MNST) disclosed that it started a modified "Dutch auction" tender offer to buy back shares of its common stock for cash for a maximum of $2.0 billion. According to the company, the price per share should not...




 

A Dutch auction is a type of auction where the auctioneer begins with a high asking price which is lowered until some participant is willing to accept the auctioneer's price, or a predetermined reserve price (the seller's minimum acceptable price) is reached. The winning participant pays the last announced price. This is also known as a "clock auction" or an open-outcry descending-price auction.

This type of auction is convenient when it is important to auction goods quickly, since a sale never requires more than one bid. Theoretically, the bidding strategy and results of this auction are equivalent to those in a sealed first-price auction.

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