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Caterpillar (CAT +0.9% at $84.56) has agreed to buy back $1B of its shares from Citibank (C) as...

Caterpillar (CAT +0.9% at $84.56) has agreed to buy back $1B of its shares from Citibank (C) as part of an accelerated stock-repurchase program. Caterpillar will immediately acquire 11M shares based on market prices and expects to complete the program in June. (PR)
Comments (3)
  • This is why fund managers like buybacks so much: they're the manager's safety exit.
    25 Apr 2013, 10:00 AM Reply Like
  • Like Apple, Cat is following in the footsteps of stupidity. Why would you buy back shares that are trading at 2.5 times your book value? That is the equivalent to buying assets for 40 cents on the dollar expended. Have none of these corporate bozos read Warren Buffett on share buybacks? You only repurchase at below enterprise value. That does not fit either CAT or AAPL.
    25 Apr 2013, 10:31 AM Reply Like
  • Why would CAT only buy shares from C? Why would C (a bank) have all of these shares? Are they in their trust funds? Are the shares held in offshore accounts so that CAT can use offshore dollars?
    25 Apr 2013, 10:22 PM Reply Like
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