IBM Gives Stock Buyback US$1 Billion Boost
IBM Gives Stock Buyback US$1 Billion Boost
December 4, 2007: It seems Cisco isn’t the only one that think’s it’s undervalued at the moment, as IBM has just announced a US$1 (AU$1.13) billion stocky buyback plan.
This latest stock announcement comes in addition to a US$12.5 (AU$14.16) billion share repurchasing program announced back in May, and is expected to be completed by February 2008.
“These stock repurchases are enabled by IBM’s strong, consistent cash flow and are an important way of returning value to IBM shareholders,” said Samuel J. Palmisano, IBM chairman, president and chief executive officer. “They are an element of our long-term roadmap for earnings per share growth through 2010 and also represent a good value at today’s prices.”
In April the IBM board of directors authorised US$15 (AU$16.99) billion for the purchase out outstanding common stock. At the end of September, the company had approximately $1.7 billion remaining for stock repurchases. This latest announcement marks a hefty speed up of its buyback plans.
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