Merck announces dividend increase and $5 billion share repurchase program

Business Wire, Feb 25, 1997

WHITEHOUSE STATION, N.J.--(BUSINESS WIRE)--February 25, 1997-- The Board of Directors of Merck & Co., Inc., in two separate actions, declared a quarterly dividend of 42 cents a share and approved a new $5 billion treasury stock purchase program.

The Board declared a quarterly dividend of 42 cents a share on the Company's common stock for the second quarter of 1997 versus the 40 cents a share dividend paid in the first quarter of 1997. The 42-cent dividend, is payable April 1, 1997 to stockholders of record at the close of business on March 7, 1997.

The Board of Directors of Merck & Co., Inc. today also approved purchases over time of up to an additional $5 billion of its common stock for its treasury. The Company is currently completing purchases under a November 1995, $3 billion authorization. Through December 31, 1996 the Company spent $2.1 billion to acquire 33 million shares under the November 1995, $3 billion authorization. Under prior approvals during the period 1986 through 1995, the Company spent $6.1 billion to acquire 218 million shares of its stock on the open market. Merck currently has approximately 1,209 million shares outstanding.

Treasury stock purchases will be made on the open market in block transactions and in privately negotiated transactions. Purchases may be suspended from time to time or discontinued. Shares acquired will be available for use under the Company's employee benefit programs and for other general corporate purposes.

Merck & Co., Inc. is a leading research-driven pharmaceutical products and services company. Merck discovers, develops, manufactures and markets a broad range of innovative products to improve human and animal health. Merck-Medco Managed Care manages pharmacy benefits for employers, insurers and other plan sponsors, encouraging the appropriate use of medicines and providing health management programs. Through these complementary capabilities, Merck works to improve quality of life and contain overall health-care costs.

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