by Lynn Shapiro
, Writer | December 03, 2008
Royal Philips Electronics, which trades on the NYSE under the symbol PHG, announced on November 20, that it completed the buyback of 38,496,058 shares during the period between August 25 and November 14. The shares totaled 5B euros, or approximately $6.5 billion.
"We are executing a significant share repurchase program in order to enhance value for our shareholders," Arent Jan Hesselink, a Philips spokesman, told DOTmed News. The fewer shares that are outstanding, the higher the price/earnings ratios are for existing shareholders, he explained.
Philips funded its buyback with proceeds from a number of businesses it sold, which were no longer considered to be core, Hesselink said. After restructuring the company, Philips is focused on there busineses: healthcare, lighting and consumer lifestyle products.
See more about Philips' third-quarter '08 earnings report at https://www.dotmed.com/news/story/7314