Bloomberg News

Greenhill Plans to Sell Iridium Stake to Fund Share Buybacks

October 04, 2011

Oct. 4 (Bloomberg) -- Greenhill & Co., the advisory firm that has slid 64 percent in New York trading this year, may sell its entire $62.5 million stake in Iridium Communications Inc. over two years to fund repurchases of its own stock.

Greenhill, based in New York, filed a so-called 10b5-1 plan to sell as much as 9.8 million shares, according to a statement by satellite operator Iridium, whose shares closed at $6.38 today.

Sales will be made in “small daily increments,” Greenhill Chief Executive Officer Scott Bok wrote in a letter today to McLean, Virginia-based Iridium filed with regulators.

The disposal “beginning now is primarily to fund the repurchase of our own Greenhill common stock, which we believe is an attractive opportunity at this time,” Bok wrote. Sales will be paced over years in the hope that “the full value of Iridium will be reflected in its share price over time.”

To contact the reporter on this story: Laura Marcinek in New York at lmarcinek3@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net


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