Steven Madden to repurchase up to 2.6 million shares

By Lisa Kerner

Charlotte, N.C. Feb. 19 - Steven Madden, Ltd. said its board of directors will move forward with a modified Dutch auction tender offer using a portion of Steven Madden's cash balances.

Steven Madden will repurchase up to 2.6 million shares, or 12.9%, of its common stock at a price per share not greater than $20 and not less than $16.50.

The tender offer is scheduled to begin on Feb. 20 and end at midnight ET on March 18, unless extended.

If the maximum 2.6 million shares are tendered at $20 per share, the total purchase price will be $52 million.

Steven Madden's directors and officers do not intend to tender their shares in the offer.

The tender follows the company's completion of its review of strategic alternatives first announced in October.

"Over the last few months, we have thoroughly explored a number of strategic alternatives to maximize shareholder value," the chairman of the strategic review committee, Walter Yetnikoff, said in a company news release.

"Following the board's evaluation and consideration of these alternatives, we have concluded that the company's financial position, stock valuation and current market conditions make this an opportune time to launch a Dutch auction tender offer."

D.F. King & Co., Inc. is the information agent, and American Stock Transfer & Trust Co. will serve as the depositary for the tender offer.

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