GERMANY: DaimlerChrysler to buy back shares
DaimlerChrysler on Wednesday announced a share buy-back programme, acting on management board approval granted back in April.
"This is a logical step to take in view of the high net liquidity in the industrial business as well as the good prospects for earnings and cash flows in all divisions," DC said in a statement.
"Following the structural and strategic realignment of the core business, this decision will also optimise the company's capital structure and make it more efficient.
Daimler said it would acquire, through the stock exchange, nearly 10% of the outstanding shares for up to EUR7.5bn.
It plans to buy EUR3.5bn's worth by the end of the year and an additional EUR4bn by the end of August 2008, "provided that the earnings situation is in line with expectations for full-year 2007".
Chairman Dieter Zetsche said: "By taking this step, we are underscoring the positive perspective for the company and all of its divisions. Both the earnings trend and the cash-flow development are very promising and give us additional scope to shape our future successfully. We also intend to let our shareholders participate in this positive development."