'Ass0ciatedPress' pid='17087' datel Wrote:
'Relker' pid='17086' datel Wrote:Is it possible that IOC has started the share buyback? They announced it a while ago. Now, a deal is imminent, they want a good purchase price. This price will rise after a deal announcement.
Correct me if I'm wrong but when a company buys back shares? Aren't they limiting they number of shares outstanding? Thus they wouldn't be contributed to 5.2% in essence they make the value of our shares increase as the total size of the pot has been reduced.....
I'm pretty sure the Company has not "announced" any specific authorization for any share buyback, and therefore would not be making any share purchases. They once indicated that it is something the BOD would consider in the future contingent upon cash position.
AP is correct in that shares bought back by the Company would be retired or become "treasury shares" and reduce the shares outstanding, and would not be in any such "5%" reporting, and would increase each remaining share's portion of ownership and earnings (i.e. would be anti-dilutive).