William J. Pulte, founder and chairman of Pulte Homes Inc., said Monday that he would sell as many as 3.8 million shares under an accord that allows him to buy back the stock by the end of the year.
In a filing with the Securities and Exchange Commission, Pulte said he was selling as much as 9% of his stock in the Bloomfield, Mich., company to raise cash for transactions involving friends and family members.
The prepaid variable forward contract allows Pulte to keep dividends and voting rights and retain an interest in possible increases in the shares' value. He can buy the shares back for cash, and the accord also provides protection against a decline.
"I am extremely confident in the future of Pulte Homes and chose this form of transaction to allow me to retain participation in any future appreciation of the shares," said Pulte, the company's largest shareholder with 16.5% of the company.
Pulte Homes rose 26 cents, or 1.8%, to $14.75. The announcement came after the market closed.