Buy back Liam23 May 2009 19:23
Buyback
A buyback allows companies to invest in themselves. By reducing the number of shares outstanding on the market, buybacks increase the proportion of shares a company owns. Buybacks can be carried out in two ways:
1. Shareholders may be presented with a tender offer whereby they have the option to submit (or tender) a portion or all of their shares within a certain time frame and at a premium to the current market price. This premium compensates investors for tendering their shares rather than holding on to them.
My reasoning why they would be doing a buy back is so when they get rid of the share dilution the price of these shares will be increased giving them a stronger position when the bids are finalised