PEORIA, Ill., Jan. 30, 2014 /PRNewswire/ -- Caterpillar Inc. (NYSE: CAT) today announced it has entered into a definitive agreement with Citibank, N.A. to purchase approximately $1.7 billion of its common stock under an accelerated stock repurchase transaction. This repurchase is in addition to the $2 billion of stock repurchased in 2013.
"The strength of our balance sheet and record 2013 operating cash flow enable us to announce the completion of our current $7.5 billion stock repurchase authorization," said Caterpillar Chairman and CEO Doug Oberhelman. "This repurchase, combined with the new $10 billion stock repurchase program announced on January 27, affirms our commitment to deliver superior returns to stockholders through the cycles."
Pursuant to the agreement, Caterpillar expects immediate delivery of approximately 18 million shares based on current market prices. The final number of shares to be repurchased and the aggregate cost to Caterpillar will be based on Caterpillar's volume-weighted average stock price during the term of the transaction, which is expected to be completed in March of 2014.
The current transaction will complete the
$7.5 billion repurchase authorization originally approved by Caterpillar's Board of Directors in 2007 and set to expire on
December 31, 2015. In anticipation of the completion of the 2007 authorization, the company's Board of Directors approved a new
$10 billion stock repurchase program, which will expire on
December 31, 2018.
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