Avaya to buy back US$500m of its own stock
By
Robert Jaques
16 February 2007 10:25AM
Tags:
avaya | buy | back | 500m | own | stock
Repurchase plan to run over next two years.
The board of directors of communications firm Avaya today authorised a $500m share repurchase plan.
Under the scheme, Avaya is authorised to repurchase up to $500m of its outstanding shares of common stock over the next two years.
Caroline Dorsa, chief financial officer at Avaya, said that the move would boost shareholder value over the long-term.
The repurchases will be made at management's discretion in the open market or in privately negotiated transactions in compliance with securities laws and other legal requirements.
The transactions are subject to market conditions, share price and other factors, the company stated.
Avaya stressed that the plan does not obligate it to acquire any particular amount of common stock, and the plan may be suspended or discontinued at any time. Share repurchases will be funded using cash reserves.
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