Share repurchase


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Share repurchase

Program by which a corporation buys back its own shares in the open market. It is usually done when shares are undervalued. Since repurchase reduces the number of shares outstanding and thus increases earnings per share, it tends to elevate the market value of the remaining shares held by stockholders.

Buyback

The act of a publicly-traded company buying its own stock, sometimes at a price well above fair market value. Buyback is not intended to stop trade on its stock. Rather, it is an attempt either to reduce the supply of shares in the market (with the hope of driving up the share price) or to prevent a real or suspected hostile takeover. If a company becomes its own majority or plurality shareholder, it either makes a hostile takeover impossible or more expensive for the acquiring company. A buyback may occur all at once or gradually over time. See also: Antitakeover measure, Self-tender offer.
References in periodicals archive ?
The five most commonly cited reasons to set up a share repurchase program are:
These high levels of free cash flow allow us to build shareholder value in three ways: the advancement of our internal modem product development in support of product launch targeted for the fall of 2007, acquisitions of technology, and significant share repurchases.
Its first priority is to invest in its businesses and secondarily, to return cash to shareholders through increased dividends and share repurchases.
PBG remains committed to returning cash to shareholders through a combination of share repurchases and dividends.
Under the accelerated share repurchase program, Dollar Tree will immediately pay $100 million and receive approximately 2.
Orbital intends to use the net proceeds from the sale of the notes, together with cash on hand, to repurchase its outstanding 9% senior notes due 2011 and to fund the above-described share repurchase.
Polaris enters into an accelerated share repurchase agreement with Goldman, Sachs & Co.
The repurchase was made under the terms of Aspen's share repurchase program authorized by the Board of Directors and announced on November 8, 2006, for a total repurchase program of up to $300 million of its ordinary shares within two years.
At a meeting held yesterday, the board of directors approved a new share repurchase plan under which up to $50 million of LCA-Vision common shares may be repurchased.
HAMILTON, Bermuda -- Aspen Insurance Holdings Limited ("Aspen") (NYSE:AHL) (BSX:AHL BH) announced today that it has commenced a public offering of $200 million of a new series of its perpetual non-cumulative preference shares and that its board of directors has approved a share repurchase program of up to $300 million of its ordinary shares within the next two years.
Nasdaq:ACAT) today announced that its board of directors has authorized a new share repurchase program of up to $20 million of its common stock.
Augments Existing Share Repurchase Authorization Set to Expire