Forest Labs repurchases $350 million additional shares

US drugmaker Forest Laboratories (NYSE: FRX), which is an ongoing battle with billionaire investor Carl Icahn who is trying to gain greater control of the company, says it has entered into an agreement with Morgan Stanley & Co to repurchase an additional $350 million of its common shares under an accelerated share repurchase program. Forest will acquire these common shares under the board authorized 50 million share repurchase program announced on May 18, 2010.

The specific number of shares to be repurchased will be determined by the discounted volume-weighted average price of the stock during the term of the agreement, subject to collar provisions that establish the minimum and maximum price. The transaction is expected to be completed no later than the quarter ending September 30, 2012. All of the purchased shares will be retired. Prior to issuance of this press release, no trading activity occurred in the public market related to this accelerated share repurchase transaction.

Returning capital to shareholders