Nike repurchasing $5 billion of shares |
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| Monday, 22 September 2008 | |
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Nike announced that its Board of Directors has approved a new four-year, $5 billion program to repurchase shares of Nike's Class B
Common Stock. The new program will commence upon the completion of the Company's current $3 billion share repurchase program.
"We are pleased to extend Nike's track record of returning value to shareholders through sustained share repurchases," said Mark Parker, Nike Inc. President and CEO. "Over the past 10 years, Nike Inc. has returned $5.5 billion to shareholders through the repurchase of more than 157 million shares. This new share repurchase program demonstrates our continued confidence in Nike's long-term growth prospects and financial strength."* Citi analyst Kate McShane said in a research note that the share repurchases "could be a big catalyst for the stock in this environment. It demonstrates the strength of Nike's balance sheet (and) the confidence it has in its business." Nike's announcement comes after the company completed its $3 billion share buyback program this month, in which the company repurchased shares over about two years. |
