Wednesday, May 30, 2007

IBM Hones the Stock Buyback - WSJ.com

 One way to increase earnings per share...

International Business Machines Corp. said it has spent $12.5 billion to buy back its stock in one of the largest uses of an "accelerated share repurchase," a tactic that allows a company to boost per-share earnings more rapidly than it would using a conventional buyback approach.

In the complex deal, IBM created a Netherlands unit to finance the stock repurchase with overseas earnings and avoid having to repatriate funds, which would make them subject to higher U.S. taxes.

Source: IBM Hones the Stock Buyback - WSJ.com

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