EDS Plans Stock Buyback

The company can buy $1 billion of shares.
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Technology-services company

EDS

(EDS)

said its board authorized the repurchase of up to $1 billion of its common stock.

The Plano, Texas, company can buy back the shares during the next 18 months in the open market or in privately negotiated transactions.

EDS said the share repurchases will be financed by its available cash. EDS ended 2005 with around $3 billion in cash and roughly $850 million in bank credit lines.

"The share repurchase authorization reflects our confidence in our business direction and our ability to produce strong levels of cash flow over time," said EDS Chairman and CEO Mike Jordan. "EDS' strong balance sheet provides the financial flexibility to invest in our growth initiatives while at the same time returning value to our shareholders."

Shares of EDS were down 35 cents, or 1.3%, to $26.95.