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Daimler to buy back $10.3B of shares
Germany's DaimlerChrysler AG said Wednesday it would buy back about $10.3 billion of its shares to reduce its liquidity after the Chrysler Group sale.
The buyback "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," the automaker said in a statement.
"Following the structural and strategic realignment of the core business, this decision will also optimize the company's capital structure and make it more efficient," the company said.
DaimlerChrysler -- which sold 80.1 percent of the Chrysler Group to U.S. private-equity firm to Cerberus Capital Management LP for $7.4 billion Aug. 3 -- said after the sale that net liquidity in the industrial business was around $17.8 billion.
DaimlerChrysler plans to buy about $4.8 billion by the end of the year and about $5.5 billion by the end of next August, "provided that the earnings situation is in line with expectations for full-year 2007," the company said.
The shares bought back are to be canceled at a later date without any reduction in the capital stock, DaimlerChrysler said.
The buyback "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," the automaker said in a statement.
"Following the structural and strategic realignment of the core business, this decision will also optimize the company's capital structure and make it more efficient," the company said.
DaimlerChrysler -- which sold 80.1 percent of the Chrysler Group to U.S. private-equity firm to Cerberus Capital Management LP for $7.4 billion Aug. 3 -- said after the sale that net liquidity in the industrial business was around $17.8 billion.
DaimlerChrysler plans to buy about $4.8 billion by the end of the year and about $5.5 billion by the end of next August, "provided that the earnings situation is in line with expectations for full-year 2007," the company said.
The shares bought back are to be canceled at a later date without any reduction in the capital stock, DaimlerChrysler said.
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