Daimler unveils share buyback plan worth up to six billion euros

0 Comments | AFP, June, 2008

FRANKFURT (AFP) — German auto manufacturer Daimler said on Tuesday it would buy back about 96.4 million of its own shares, some 10 percent of its outstanding stock, for up to six billion euros (9.3 billion dollars).

Daimler's capital structure would also be improved by "reducing the use of equity capital, which is more expensive than debt capital," a Daimler statement said.

"This will avoid investment decisions being limited by excessively high capital costs."

Shares acquired through the action would be either cancelled or possibly used later as part of stock option plans, the statement added.

"In order to optimize the buyback, shares may also be acquired with the use of derivatives," Daimler said.

The company's board set a deadline of April...