International Paper on July 13 announced that its board of directors has authorized a share repurchase program to acquire up to $3 billion of the company's stock.
The $3 billion share repurchase amounts to approximately 20 percent of the company's outstanding shares at yesterday's closing price of $32.12. International Paper plans to begin the program in the third quarter of 2006 and intends to repurchase a significant amount of shares before the end of the year. The company is considering various forms of share repurchase vehicles, including tender offers, accelerated share repurchases and/or open market purchases, with the intention of completing the program before the end of 2007.
"A year ago, International Paper announced its transformation plan, and committed to a balanced and disciplined use of proceeds from planned divestitures. The board's decision to return up to $3 billion to our shareowners is another milestone in delivering on that promise," said John Faraci, IP chairman and chief executive. "In addition to returning value to our shareowners through the share repurchase, we are reducing debt to strengthen our balance sheet and we are exploring attractive reinvestment opportunities that will improve our global uncoated paper and packaging businesses."
