UPS Sets Big Buyback

The board authorizes a $2 billion increase in the amount of stock the company can repurchase.

Author:: Ross Snel
Publish date:: Aug 11, 2005 4:57 PM EDT

The board at

UPS

Thursday authorized a $2 billion increase in the amount of stock the company can repurchase from investors.

The decision increases to $2.27 billion the value of Class A and B shares the parcel-shipping company can buy back. Share repurchases tend to benefit investors by reducing the number of publicly traded shares and lifting the value of those continuing to trade.

Also Thursday, the board elected two new outside directors to serve until next spring, when they'll stand for formal election at the annual shareholders' meeting.

The directors are Michael Burns, the chairman and CEO of auto-parts supplier

Dana

(DCN)

, and Stuart Eizenstat, a key aide to former Presidents Jimmy Carter and Bill Clinton and now a partner in the Washington, D.C., law firm of Covington & Burling.

The board also declared a regular quarterly dividend of 33 cents a share.

UPS shares finished Thursday's session up 16 cents, or 0.2%, at $73.22.