IBM earmarks $10 billion for share buyback
27 Oct 2010
Global technology giant International Business Machines Corp (IBM) said yesterday that the company's board has authorized $10 billion in additional funds for its share repurchase programme.
This move brings the total amount available for the buyback to $12.3 billion. The company holds a balance amount of $2.3 billion out of the previous $8 billion sanctioned for the same purpose in April.
In a statement, IBM said it would repurchase shares on the open market or in private transactions from time to time, depending on market conditions.
The board has also declared a quarterly dividend of $0.65 per share, payable to its shareholders on 10 December 2010, its uninterrupted quarterly dividend payout since 1916.
The company's chairman, president, and chief executive officer Samuel Palmisano said: ''IBM's higher value, higher margin business strategy has enabled the return of $91 billion since 2003 to our shareholders through share repurchases and dividends.''
''We've done this while investing to bring new products and services to market, and expanding IBM's business into new, emerging markets,'' he continued.
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