Walmart announces $15bn buy-back plan

Walmart will buy back $15bn of its own shares as it seeks to improve returns to shareholders against a background of flat growth in its core US business.

Charles Holley, chief financial officer of the world’s largest retailer, told the company’s shareholder meeting that the company had approved a new $15bn plan beginning on Friday.

The programme is likely to lift the stake of the Walton family, which founded the company, to over 50 per cent in the next year or two.

The Walton stake is currently around 48 per cent and has risen progressively from 38 per cent over the past decade due to the effect of buy-backs.

Since they reduce the number of outstanding shares, buy-backs are a means of supporting a company’s share price. But so far they have not helped Walmart’s stock break out of a prolonged phase of stagnation.

Read Full Article from Financial Times

- Posted: 2011-06-03 11:05:13

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