Directors of Rohm and Haas Company have authorised the repurchase of up to $2 billion of their common stock.
The company plans to implement this new programme in two stages:
* Execute a $1 billion accelerated share repurchase (ASR) during the third quarter of 2007, which will be funded by the issuance of new debt. The company intend to execute the ASR following the completion of their existing $1 billion share repurchase programme, which was authorised by the board in December, 2004.
* Utilise the remaining $1 billion over 2008-2010, with the timing of the purchases dependent on market conditions. These purchases will be funded from available cash.
‘Today’s board actions demonstrate our commitment to leverage our financial strength to drive shareholder value and underscore our confidence in the long-term potential for Rohm and Haas Company’, commented Raj L Gupta, chairman, president and chief executive officer. Completion of the existing programme plus the new are anticipated to reduce shares outstanding to approximately 195 million shares by September 30, 2007, from 219 million at the end of 2006.
