Fiserv Buys Back “Up To” 7 Million Shares

Groan.

Fiserv, Inc., the leading global provider of financial services technology solutions, today announced that its Board of Directors has authorized a repurchase of up to seven million additional shares of the company’s common stock, which represents approximately five percent of its outstanding shares.

Fiserv may repurchase shares in the open market or in privately negotiated transactions at the discretion of management subject to its assessment of market conditions and other factors. This authorization does not expire.

Let’s work out the math. Seven million shares at the current price comes to $385 million. At last count, FISV has 149 million shares outstanding.

I’m pretty sure most shareholders would rather have $2.58 per share of cash dividends in their pockets than have the board buying FISV shares near a 52-week high.

Of course, the board has only authorized a purchase “up to” 7 million, which also includes zero shares. These share repurchase statements are good for PR, but they don’t do much for shareholders.

Posted by on November 19th, 2010 at 8:46 am


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