|
Citigroup $2B repurchase
|
 |
March 16, 1999: 5:30 p.m. ET
Financial giant will fund employee benefits program with stock buyback
|
New York (CNNfn) - For the second time in six months, Citigroup's board of directors has authorized a $2 billion stock repurchase program to help fund its employee benefits plan.
The New York-based bank said Tuesday its board of directors had decided to buy back up to $2 billion of its common stock.
The board approved a similar plan last November, but company spokesman Michael Schlein said less than $700 million remains from that and previous authorizations.
Citigroup (C), the nation's largest financial services company, said it repurchased roughly $900 million of its common stock from the start of this year through March 15.
Although their use has slowed somewhat, stock buybacks became a popular tool among U.S. companies last year as a means to boost sagging share prices and increase earnings per share. They are also popular among investors because capital gains are taxed more favorably than dividends.
Other repurchase programs approved recently include a $1.2 billion buyback by Volvo (VOLVY) and a $1.5 billion buyback by Sears, Roebuck & Co. (S)
Citigroup's stock closed down 1 7/16 Tuesday to 64-1/2 in trading Tuesday.
|
|
|
|
|
|
Citigroup
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
