BASF to double share buyback this year to Euro1bn

04 October 2004 11:15  [Source: ICIS news]

LONDON (CNI)--BASF will double its 2004 share buyback programme this year to Euro1bn ($1.24bn), the German chemicals group announced on Monday.

 

BASF has already spent Euro500m this year to  buy back 11.64m shares (2.09% of the company’s share capital) at an average price of Euro42.92.

 

It said today that the purchase of additional shares, which will begin immediately, is aimed at reducing the company's equity ratio, thus lowering the cost of capital and increasing earnings per share (EPS).

 

For the past two years BASF has repurchased Euro500m worth of shares annually. 

 

Announcement of the expanded buyback programme led to an immediate boost in BASF's share price. It was up 1.9% to Euro49.7 in early morning trading on the Frankfurt Stock Exchange . However, it shed some of these gains to stand at Euro49.05 by about 11:41 hours CET (09:41 GMT).

By: Hilde Ovrebekk
+44 20 8652 3214

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