Quest Diagnostics to repurchase 15.4M shares from GSK affiliate

Quest Diagnostics Incorporated (NYSE: DGX) today announced that it had agreed to repurchase at a negotiated price 15.4 million shares of its common stock from its largest shareholder, an affiliate of GlaxoSmithKline plc (GSK). Subsequent to the transaction, GSK will no longer hold any shares of common stock of Quest Diagnostics.

"Through this transaction, we are taking advantage of a unique opportunity to enhance shareholder value and demonstrating confidence in the long term outlook for our business," said Surya N. Mohapatra, Chairman and CEO of Quest Diagnostics. "We continue to maintain the financial flexibility to pursue acquisitions, which remains a key element of our growth strategy."

Quest Diagnostics will repurchase the shares using a combination of cash on hand and borrowing through available credit facilities. The repurchase will be applied against the company's current $1 billion share repurchase authorization.

As a result of this transaction, the company is raising its 2011 guidance for diluted earnings per share before special items to be between $4.25 to $4.45. Previous guidance was $4.10 to $4.30.

Source:

Quest Diagnostics Incorporated

Citations

Please use one of the following formats to cite this article in your essay, paper or report:

  • APA

    Quest Diagnostics. (2019, June 20). Quest Diagnostics to repurchase 15.4M shares from GSK affiliate. News-Medical. Retrieved on October 04, 2022 from https://www.news-medical.net/news/20110201/Quest-Diagnostics-to-repurchase-154M-shares-from-GSK-affiliate.aspx.

  • MLA

    Quest Diagnostics. "Quest Diagnostics to repurchase 15.4M shares from GSK affiliate". News-Medical. 04 October 2022. <https://www.news-medical.net/news/20110201/Quest-Diagnostics-to-repurchase-154M-shares-from-GSK-affiliate.aspx>.

  • Chicago

    Quest Diagnostics. "Quest Diagnostics to repurchase 15.4M shares from GSK affiliate". News-Medical. https://www.news-medical.net/news/20110201/Quest-Diagnostics-to-repurchase-154M-shares-from-GSK-affiliate.aspx. (accessed October 04, 2022).

  • Harvard

    Quest Diagnostics. 2019. Quest Diagnostics to repurchase 15.4M shares from GSK affiliate. News-Medical, viewed 04 October 2022, https://www.news-medical.net/news/20110201/Quest-Diagnostics-to-repurchase-154M-shares-from-GSK-affiliate.aspx.

Comments

The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of News Medical.
Post a new comment
Post
You might also like...
Quest Diagnostics analysis shows workforce drug use in U.S. reaches 10-year high