Fifth Third Bancorp repurchased the warrant it had issued to the Treasury Department under the Troubled Asset Relief Program, meaning the government no longer holds any Fifth Third securities under the Tarp's Capital Purchase Program. The agreed-upon repurchase price was $280 million.
"We are pleased to complete the repurchase of the U.S. Treasury's warrant in Fifth Third, eliminating future dilution to common shares while providing taxpayers with an additional 8% return on their investment in Fifth Third," said Kevin T. Kabat, president and chief executive of the bank.
The warrant had come with the right to purchase 43.6 million shares of Fifth Third common stock at $11.72 a share. The Cincinnati company's stock closed Wednesday at $13.40.