The goal of the Share Buyback
Program is to promote an efficient use of available cash resources in order to maximize the Company's capital allocation;
With effect from the 30th April, the regime by which private limited companies perform share buybacks
has changed, making it easier for them to buy back shares from departing employees who are members of an employees' share scheme.
The announcement of a share buyback
can indicate that the management is so confident of the company's prospects that it believes the best investment it can make is to buy back its own shares.
As a whole, 251 companies in the index enacted share buybacks
in the first quarter, up from 214 issues in the fourth quarter of 2009, 195 in third quarter of 2009, and 169 in the second quarter of 2009.
I hereby confirm that the Board focus remains on providing the maximum value for our shareholders, we therefore decided to initiate the share buyback
program as we strongly believe in our franchise future performance.
Shares in both companies rose yesterday, even though Thomas Cook said it was suspending share buybacks
as a result of the announcement.
The Board of Management of Germany-based Daimler AG (Daimler) (NYSE: DAI) (FWB: DAI is starting a new share buyback
If the group goes ahead with plans to purchase pounds 200m of its own shares, it will be one of the largest share buyback
programmes carried out by a midcap company in recent years.
A share buyback
can provide the solution by returning the money to shareholders who can use it to take other investment opportunities.
The board of directors of Information Holdings (IHI; Stamford, CT), parent of MicroPatent, Master Data Center, Liquent--IDRAC and LPS Group, has approved a share buyback
program, authorizing the company to purchase up to $30 million of common stock.
The agency also said that while the share buyback
of 100 billion yen is cash outflow, the company has a high level of liquidity and financial strength to absorb the impact of the share buyback
Investors usually consider share buyback
programs, as they are also known, as a buy signal for the stock.