Ford says it will buy back $1.8B in stock

Written By THE ASSOCIATED PRESS Posted: 05/07/2014, 10:38am

NEW YORK — Ford says it will buy back up to about 116 million shares of company stock worth about $1.8 billion.

The Dearborn, Michigan-based automaker says the buybacks will help offset potential dilution from convertible debt and stock-based compensation for employees. Those can increase the number of shares on the market and weigh on per-share earnings. By buying back its shares, Ford can help boost its earnings per share.

The price tag is based on Wednesday’s closing price of $15.46 per share.

Ford Motor Co. shares rose nearly 1 percent to $15.60 in after-hours trading Wednesday. They closed down 10 cents at $15.46. The stock’s value is nearly unchanged in 2014.

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