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More stock buybacks set
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September 14, 2001: 2:16 p.m. ET
Cisco, H&R Block to take advantage of relaxed limits on share repurchasing
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NEW YORK (CNNfn) - Cisco Systems and H&R Block both are taking advantage of relaxed limits on corporate share repurchases to boost confidence in their respective stocks.
H&R Block said Friday it plans to buy 15 million more shares from stockholders, depending on the price of the stock and availability of excess cash, while Cisco said it plans to repurchase up to $3 billion of its shares over the next two years.
U.S. Securities and Exchange Commission Chairman Harvey Pitt said Thursday relaxing limits will be one of the steps taken to ensure an orderly market, but the SEC will retain "any restrictions that we think have an impact on public investors."
"The increase in repurchase authorization reflects the confidence that the board of directors and management have in H&R Block's future," H&R Block President and CEO Mark A. Ernst said. "Given our strong cash position, share repurchase continues to be a great way for us to invest in the continuing success of H&R Block and enhance shareholder value."
Cisco CFO Larry Carter said Thursday Cisco shares' current valuation doesn't reflect the long-term value of the company and a buyback is the right thing to do.
Cisco stock, which closed at $14.47 Monday, has tumbled from $63.88 almost a year ago. But H&R Block's stock, which closed at $36.90 Monday, is close to its 52-week high.
Beyond easing corporate share repurchase rules, regulators may be eyeing adjustments in margin requirements and clamping down on existing short-selling restrictions, securities industry spokesmen, lawyers and academics said.
"With respect to short selling," Pitt said, "the goal of all of us is to have a market that most closely approximates the normal trading environment. As a result of that, you can tell in which direction we will probably be leaning." 
-- from staff and wire reports
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