v2.4.0.6
SHAREHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2011
SHAREHOLDERS' EQUITY [Abstract]  
SHAREHOLDERS' EQUITY [Text Block]

13.       SHAREHOLDERS' EQUITY

 

a)         Common Shares

       

At December 31, 2011, and 2010, our authorized share capital was 800,000,000 common shares, par value of $0.0125 per share.

The following table presents our common shares issued and outstanding, excluding restricted shares under our stock compensation plans (see Note 15 - Stock Compensation Plans):
         
          
      
 Year ended December 31, 2011 2010 2009 
          
 Shares issued, balance at beginning of period  154,912  152,465  150,455 
 Shares issued  15,247  2,447  2,010 
 Total shares issued at end of period  170,159  154,912  152,465 
          
 Treasury shares, balance at beginning of period  (42,519)  (20,325)  (14,243) 
 Shares repurchased   (2,052)  (22,194)  (6,082) 
 Total treasury shares at end of period  (44,571)  (42,519)  (20,325) 
          
 Total shares outstanding  125,588  112,393  132,140 
          

Warrants

During 2011, our founding shareholders exercised all remaining warrants. These warrants were exercised on a cashless basis pursuant to the terms of the applicable warrant agreements, resulting in a lower number of shares being issued than the number of warrants exercised. Accordingly, we issued 12,893,483 common shares upon the exercise of 19,827,760 warrants. In connection with the warrant exercise, we paid deferred dividends of $93 million to those warrant holders who chose the deferred cash option for dividends declared.

At December 31, 2010, 19,787,712 warrants were outstanding and exercisable at an average price of $12.31.

 

Treasury shares

 

Our Board of Directors have authorized and approved the following:

 

  • on December 6, 2007, a share repurchase plan up to $400 million of our common shares until December 31, 2009;

     

  • on December 10, 2009, extend the above share repurchase plan until December 31, 2011, and a new share up to $500 million of our common shares until December 31, 2011; and

     

  • on September 24, 2010, a new share repurchase plan up to $750 million of our common shares until December 31, 2012.

 

At December 31, 2011, we had $544 million of capacity remaining under the share repurchase plans. Share repurchases may be effected from time to time in the open market or private negotiated transactions, depending on market conditions.

 

The following table presents our common share repurchase activities, which are held in treasury:
           
     
 Year ended December 31, 2011  2010  2009 
 In the open market:         
 Total shares  1,609   18,750   5,851 
 Total cost$ 49,974 $ 590,694 $ 169,620 
 Average price per share(2)$ 31.07 $ 31.50 $ 28.99 
           
 From employees:(1)         
 Total shares  443   381   231 
 Total cost$ 15,911 $ 11,062 $ 6,289 
 Average price per share(2)$ 35.92 $ 29.04 $ 27.23 
           
 From founding shareholder:(3)         
 Total shares  -   3,063   - 
 Total cost$ -   107,827   - 
 Average price per share(2)$ -   35.21   - 
           
 Total         
 Total shares  2,052   22,194   6,082 
 Total cost$ 65,885 $ 709,583 $ 175,909 
 Average price per share(2)$ 32.11 $ 31.97 $ 28.92 
           
(1) To satisfy withholding tax liabilities upon vesting of restricted stock, restricted stock units, and exercise of stock options. Share repurchases from employees are excluded from the authorized share repurchase plans noted above.
(2) Calculated using whole figures.
(3) During the fourth quarter of 2010, we privately negotiated with Trident II, L.P. and affiliated entities to repurchase 3,062,824 of our common shares.

b)        Series A and B Preferred Shares

 

On October 5, 2005, we issued $250 million of 7.25% series A Preferred shares, par value $0.0125 per share, with a liquidation preference of $25.00 per share. We may redeem the shares at a redemption price of $25.00 per share. Dividends on the series A Preferred shares are non-cumulative. Consequently, if the board of directors does not authorize and declare a dividend for any dividend period, holders of the series A Preferred shares will not be entitled to receive a dividend for such period, and such undeclared dividend will not accumulate and be payable. Holders of series A Preferred shares will be entitled to receive, only when, as and if declared by the board of directors, non-cumulative cash dividends from the original issue date, quarterly in arrears on the fifteenth day of January, April, July and October of each year, commencing on January 15, 2006, without accumulation of any undeclared dividends. To the extent declared, these dividends will accumulate, with respect to each dividend period, in an amount per share equal to 7.25% of the liquidation preference per annum. For 2011 and 2010, the total dividends declared and paid on series A Preferred share was $1.8125 per share.

 

On November 23, 2005, we issued $250 million of 7.50% series B Preferred shares with a liquidation preference of $100.00 per share. We may redeem the shares on or after December 1, 2015 at a redemption price of $100.00 per share. Dividends on the series B Preferred shares if, as and when declared by our board of directors will be payable initially at a fixed rate per annum equal to 7.50% of the liquidation preference on the first day of March, June, September and December of each year, commencing on March 1, 2006, up to but not including December 1, 2015. Commencing on March 1, 2016, the dividend rate on the series B Preferred shares will be payable at a floating rate. During a floating rate period, the floating rate per annum will be reset quarterly at a rate equal to 3.4525% plus the 3-month LIBOR Rate. Dividends on the series B Preferred shares are non-cumulative. For 2011 and 2010, the total dividends declared and paid on series B Preferred share was $7.50 per share.

 

The holders of the series A and B Preferred shares have no voting rights other than the right to elect a specified number of directors if preferred share dividends are not declared and paid for a specified period.