Weight Watchers to buy back 25 percent of shares

NEW YORK (AP) — Weight Watchers International Inc. said Wednesday that it plans to buy back nearly 25 percent of its outstanding shares through a tender offer and an arrangement with its largest shareholder.

The weight-loss company said its modified Dutch auction tender offer to buy up to $720 million worth of its common stock was oversubscribed. It had offered to buy nearly 8.8 million of its shares, roughly 12 percent of those outstanding, at $82 apiece, but stockholders tendered more than 9 million shares.

Weight Watchers had arranged with its largest shareholder, Artal Holdings Sp., to purchase whatever amount of stock would keep Artal's stake in the company at roughly the same percentage. As a result, it plans to buy nearly 9.5 million shares from Artal at $82 per share.

Including both the tender offer and the Artal repurchase, Weight Watchers will spend approximately $1.5 billion buying back nearly 18.3 million of its common shares.

Credit Suisse Securities and J.P. Morgan Securities served as the lead dealer managers. Merrill Lynch, Pierce, Fenner, Smith Inc. and Scotia Capital Inc. served as the co-dealer managers for the tender offer.

Shares of Weight Watchers were down 48 cents, trading at $78.55 by afternoon.