Alcoa announces buyback of 87M shares |
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Fri, 19 Jan 2007 19:19
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NEW YORK (AFX) - Alcoa Inc., the world's largest aluminum maker, on Friday said it will repurchase up to 10 percent, or about 87 million shares, of the company's outstanding common stock.The buyback program, Alcoa's first since July 2001, calls for repurchasing the shares over three years.Alcoa also approved a public offering under its shelf registration statement of up to $2 billion of new senior notes; a cash tender offer for any or all of its outstanding 4.25 percent notes due Aug. 15, of which about $790 million are currently outstanding; and a liability management transaction extending a portion of its notes into discrete longer term maturities.The company said it will use net proceeds from the proposed public offering to reduce its outstanding balance of commercial paper, to fund amounts payable in connection with its cash tender offer for its outstanding 4.25 percent notes, and for general corporate purposes.Shares of Alcoa added 95 cents, or 3.1 percent, to $31.25 in afternoon trading on the New York Stock Exchange, where they have traded between $26.39 and $36.96 in the past year.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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