William J. Pulte, founder and chairman of Pulte Homes has filed a Form 144 with the Securities and Exchange Commission, covering 3.8 million shares of company stock -- or 9 percent of the shares he controls -- the company has reported.
According to a statement on the company’s Web site, Pulte intends to sell up to that number of shares through a prepaid variable forward contract. This allows him to receive cash now while also giving him the right to retain ownership of these shares at the end of the one-year term of the forward by settling the forward with cash.
The transaction also allows Pulte to retain an interest in a possible increase in the shares' value over the one-year period and provides protection against a potential decline in value of Pulte shares over that same period.
The filing is in accordance with the company's insider trading policy. Pulte has taken this action to provide liquidity for certain non-company related transactions involving friends and family members.
“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,” Pulte said. “I will continue in my capacity as Pulte's chairman of the board and will also retain all my voting rights and continue to receive ordinary dividends on these shares.”
Pulte Homes, one of America’s largest home builders, is based in Bloomfield Hills, Mich., and operates in 51 markets in 26 states.