The word "buyback" is a valid and commonly used word in English.
It is used to describe the process of a company buying out its own stock or previously-issued securities. Example sentence: The company decided to initiate a buyback program to increase the value of its stock.
The one surprise is that management has chosen not to roll the buyback into 2013 – instead the dividend rises 20% to 36.5p.
But Berenberg kept its hold rating, saying: The stock is now up 37% year to date and valuation looks rich even on 2014 estimates, but the ongoing share buyback and the sale of the merchandising business are likely provide support for the shares in the near term.
BAE is expected to receive up to £600m and shareholders hope it will be diverted towards them by way of a special dividend or share buyback.
This, and the apparent halt of the buyback programme, could be unhelpful but we expect to retain our neutral view on the shares.
The policy has encouraged investors into shares and, by lowering corporate bond yields, has allowed finance directors to play the share buyback game with cheaper debt.
But the company had been expected to signal another share buyback, funded by the sale of the Le Grand hotel in Paris.
It also appeared to signal the end of its share buyback programme, buying back £403m worth of shares at an average cost of £10.70 per share.
British American Tobacco, down 63.5p to £35.32, said it would invest $4.7bn to maintain its 42% stake in the enlarged Reynolds-Lorillard group, and would suspend its £1.5bn share buyback programme.
Attempts to placate them with a share buyback and special dividends failed.
And it is keeping shareholders sweet with steadily rising dividends and a share-buyback programme.But today's frantic dealmaking means conglomerates such as GE find it harder to argue that they are worth more than the sum of their parts.
The firm also sent a further signal that the empire-building era is over, announcing a doubling of its dividend and an expanded share-buyback plan returning cash to investors rather than hoarding it for big acquisitions.There is, however, a fly in the ointment: America.
