Forest Labs in deal to buy back $500 mln of its shares

Forest Laboratories Inc (FRX.N) said it has entered into a deal with Morgan Stanley & Co (MS.N) to buy back about $500 million of its common shares.

Forest said it will buy these shares under its 50 million share buyback program announced in May.

The deal is expected to be completed no later than the fourth quarter ending March 31, 2011, the company said in a statement.

The company did not specify the number of shares to be repurchased.

Shares of the company closed at $24.36 Tuesday on the New York Stock Exchange. (Reporting by Shailesh Kuber in Bangalore; Editing by Jarshad Kakkrakandy)