UPDATE 2-Jarden to launch $500 mln offer to buyback stock, shares rise

* Sees Q4 rev $1.73-$1.74 bln vs est. $1.72 bln

* Sees FY rev $6.68 bln vs est. $6.67 bln

* To launch tender offer to accelerate stock buybacks

* To suspend dividend payments

* Shares rise as much as 10 percent

Jan 24 (Reuters) - Consumer products maker Jarden Corp said it would launch a tender offer to buyback shares worth $500 million in a move to speed up its stock repurchase program, and forecast fourth-quarter revenue slightly above Wall Street expectations.

The company, which supplies products to retailers like Wal-Mart Stores Inc, Target Corp and Bed, Bath and Beyond, said it would repurchase the shares for between $30 and $33 apiece.

The news drove the stock up as much as 10 percent to $33.85 on Tuesday on the New York Stock Exchange.

"We view this as a positive step for Jarden; it reflects the company's strong cash flow generation and ... should make the stock's undervalued nature blatantly obvious to the Street," SunTrust Robinson Humphrey analyst William Chappell said.

The company, which has topped market expectations for at least eight straight quarters, has benefited from strong demand for camping and sporting goods.

It has also traditionally been able to guard margins because of its wide range of products from playing cards and cooking pots to storage containers and ski gear.

Jarden, which gets its name from the Ball "jar" and products being used in the home ("den"), said it would fund the share buybacks with cash on hand and new debt. It also plans to suspend its dividend program, after its January payment.

With over $800 million of cash on hand at year end, the company should not have any problems funding the buyback, analyst Chappell, who kept his "buy" rating on the stock, said

in a client note.

"Based on our math, a full completion of the tender offer would add between $0.50$0.75 to annualized EPS depending on the source of funds used and price execution," Chappell said.

In August, Jarden's board of directors had approved a repurchase program for up to $500 million of its common stock.

The company expects revenue of $1.73 billion to $1.74 billion, slightly above Wall Street's expectations of $1.72 billion, according to Thomson Reuters I/B/E/S.