General Mills Board of Directors Approves Dividend Increase.New Share Repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. Authorization Approved; General Mills Bylaws The rules and regulations enacted by an association or a corporation to provide a framework for its operation and management. Bylaws may specify the qualifications, rights, and liabilities of membership, and the powers, duties, and grounds for the dissolution of an Amended to Require Majority Vote for Election of Directors MINNEAPOLIS -- The Board of Directors of General Mills (NYSE NYSE See: New York Stock Exchange :GIS) today approved an increase in the company's quarterly dividend to 37 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , payable Feb. 1, 2007, to shareholders of record Jan. 10, 2007. Previously, the quarterly dividend rate was 35 cents per share. This marks the fourth increase in General Mills' quarterly dividend rate since June 2005. General Mills and its predecessor companies have now paid dividends without interruption or reduction for 108 years. In other actions at the board meeting, directors approved a new authorization for the company to repurchase up to 75 million shares of its common stock. This replaces the prior authorization prior authorization, n See predetermination. prior authorization Health insurance A cost containment measure that provides full payment of health benefits only if the hospitalization or medical treatment has been , which permitted the company to repurchase shares up to a treasury share balance of 170 million. General Mills' treasury share balance was 157 million at the end of its most recently reported quarter (August 2006). Purchases under the new authorization can be made in the open market or in privately negotiated transactions, including the use of call options, other derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. , Rule 10b5-1 trading plans and accelerated repurchase programs. Directors also amended the company bylaws to provide for the annual election of directors by a majority vote standard in uncontested elections, beginning with the 2007 annual meeting of shareholders. Previously directors were elected under a plurality vote standard. |
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