IBM authorises US$10b stock buy-back

IBM Corp on Tuesday said its board approved an additional US$10 billion in stock buy-backs, representing nearly six per cent of the computer company's out-standing shares.

IBM says the new buyback authorisation adds to US$2.3 billion remaining from a previous US$8 billion authorisation, issued in April.

The company also said it plans to request permission to buy even more shares at its next April board meeting.

IBM shares rose $1.07 to US$140.91 in morning trading.

Companies often use buy-backs to take advantage of low stock prices, but IBM's stock is close to its all-time high of US$143.03, hit October 18, just before it reported its third-quarter results.

IBM also said its board maintained the company's 65 cent quarterly dividend.

"IBM's higher-value, higher-margin business strategy has enabled the return of US$91 billion since 2003 to our shareholders through share repurchases and dividends," Samuel J. Palmisano, IBM chairman, president and CEO, said in a statement.

- AP