Home Depot may OK lower HD Supply price

ATLANTA – The Home Depot Inc. sent its already battered shares into a tailspin Thursday when it issued a double dose of bad news that it may get less than expected for its wholesale distribution unit and it is lowering how much it will pay to buy back a portion of its stock.

While the world’s largest home improvement store chain said it is committed to getting the most value from the sale of its HD Supply unit and completing its plan to repurchase up to $22.5 billion in company stock, analysts warned there could be more bumps along the way.

“With Home Depot being such a bellwether stock, restructuring the Supply financing sends a very negative message to the rest of the market,” Deutsche Bank Securities Inc. analyst Mike Baker wrote in a research note.