Genentech, Inc. (NYSE:DNA) has announced that the biotech giant has authorized the extension of its current stock repurchase program through June 30, 2009 and it amended the current repurchase program.
It is increasing the maximum number of shares that can be repurchased to a total of 150 million shares from an amount of 100 million shares, which in effect is increasing the total value of shares that can be repurchased to $10 Billion from $8 Billion. These share repurchases can be in the open market or in privately negotiated transactions from time to time at management’s discretion. It also may used derivative securities to effect repurchases.
The repurchased stock is meant to offset dilution caused by the issuance of shares in connection with Genentech’s employee stock plans, which is generally less impressive than when companies go out and retire shares or stick them in the treasury for future acquisitions.
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Jon C. Ogg
April 15, 2008
Jon Ogg produces the Special Situation Investing Newsletter. He can be reached at firstname.lastname@example.org and he does not own securities in the companies he covers.