Citicorp announces common stock repurchase of up to $3 billion over 2 years.New York--(BUSINESS WIRE)--June 20, 1995--John S. Reed, Chairman of Citicorp, announced that the company's Board of Directors today authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: management to repurchase up to $3 billion of its outstanding common or convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". over the next 24 months. This represents approximately 52.5 million shares of common stock at yesterday's closing price of $57 1/8. Mr. Reed said: "We have exceeded our 8% Tier 1 capital Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Notes: Equity capital includes instruments that can't be redeemed at the option of the holder. ratio goal, have built reserves to over $5 billion, and are generating free capital in excess of that needed to fund our business growth. Therefore, it makes sense to initiate a stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. program." The shares purchased under this program are intended in part to offset dilution from shares of common stock issued under the corporation's stock-based employee compensation and benefit programs and in connection with conversions of convertible preferred stock. Repurchases, including block purchases, are expected to be made from time to time in the open market or in private transactions depending on market conditions, and may be discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: at any time. The corporation may also sell put options on its common stock in connection with the repurchase program. Based on current market prices, a $3 billion repurchase would represent 13% of the 397 million shares of common stock outstanding and 10% of the 518 million fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. shares at March 31, 1995. CONTACT: Investor contact: Frederick A. Roesch (212) 559-2715 Press contact: John M. Morris (212) 559-4285 |
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