Fauquier Bankshares, Warrenton, Va., has authorized a "modified Dutch auction," self-tender offer for up to 76,500 shares-or 8%-of the company's outstanding stock.

In a modified Dutch auction, the bank determines how many shares it wants to buy back, then sets a price range. Owners tendering shares select a price within that range they are willing to accept. If more shares are offered to Fauquier than it wants to buy, it can fill its demand from the lower end of the price range. If fewer shares are offered, the company must buy the higher-priced shares.

Fauquier, which has $180 million of assets, has set a price range of $36 to $39 per share, a bit above the stock's recent trading price. The auction began Jan. 15 and is to end Feb. 19.

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