8-KOther EventsExhibits & Filings

AGILENT TECHNOLOGIES, INC. 8-K Report, Corporate Update (Sep 21, 2006)

Filed September 21, 2006For Securities:A

Summary

Agilent Technologies, Inc. has announced two significant capital allocation decisions through a press release dated September 20, 2006. The company's Board of Directors has approved a substantial share repurchase program, authorizing the buyback of up to $2 billion of Agilent's common stock over the next two years. This move signals management's confidence in the company's valuation and its commitment to returning capital to shareholders. In addition to the share buyback, Agilent is proceeding with the distribution of its stake in Verigy. Specifically, Agilent will distribute its 50 million ordinary shares of Verigy to Agilent common stockholders via a pro rata stock dividend. This dividend is expected to occur on October 31, 2006, for shareholders of record as of October 16, 2006. This action effectively separates Agilent from its Verigy holdings, potentially allowing for greater strategic focus for both entities.

Key Highlights

  • 1Agilent's Board approved a share repurchase program of up to $2 billion.
  • 2The share repurchase program is authorized over the next two years.
  • 3Agilent will distribute its 50 million ordinary shares of Verigy to common stockholders.
  • 4The Verigy distribution will be in the form of a pro rata stock dividend.
  • 5Record date for the Verigy stock dividend is October 16, 2006.
  • 6The Verigy share distribution is expected to occur on October 31, 2006.

Frequently Asked Questions

Agilent has approved a share repurchase program of up to $2 billion of its common stock, which is authorized to be executed over the next two years.

Agilent will distribute its 50 million ordinary shares of Verigy to Agilent common stockholders as a pro rata stock dividend.

The Verigy stock dividend is expected to be distributed on October 31, 2006. Shareholders of record as of 5 p.m. Eastern Time on October 16, 2006, will be eligible to receive the dividend.

Shareholders will receive shares of Verigy directly, effectively separating Agilent's assets from its Verigy holdings. This may allow Agilent to focus more on its core businesses and could unlock value for shareholders by allowing them to directly benefit from or manage their Verigy investment.