BUFFALO -- First Empire State Corp. authorized the purchase of up to 506,930 additional shares of its common stock, or about 7.4% of shares outstanding.
The company will use the stock as a reserve for the possible future conversion of its 9% convertible preferred into common shares.
Under this authorization, shares of the common stock may be purchased from time to time in the open market or in privately negotiated transactions.
The 9% convertible preferred is convertible at any time into shares of First Empire's common stock at a conversion price of $78.90625 a share, subject to certain adjustments. First Empire's 9% convertibl preferred is held by the National Indemnity Co., a subsidiary of Berkshire Hathaway Inc.
First Empire is an $11 billion-asset bank holding company based in Buffalo. Its principal subsidiaries include Manufactures and Traders Trust Co. and East New York Savings Bank.
