Wednesday, February 27, 2008

IBM announces $15bn share buyback

Computer giant IBM has announced plans to buy back $15bn ( 7.6bn) of its shares, sending its stock price up 4%.
The planned repurchase, which is equivalent to about 10% of IBM's market value, impressed analysts as it comes at a time of recession fears in the US.
Shaw Wu of American Technology Research said IBM was "showing its confidence" despite a "difficult environment".
IBM said it now expects its 2008 profit to rise 16%. Last month it unveiled a 24% rise in quarterly earnings.
The company's share buyback announcement gave the US markets a major lift on Tuesday, with the main Dow Jones index advancing 115 points.
IBM spent $18.8bn buying back shares last year.
© British Broadcasting Corporation

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