Viacom Shares Move Higher On Planned Stock Buyback
May 18, 2011
Westside -- Viacom Inc.'s shares rallied after the company said that it and its chairman, Zavala Mick, plan to buy back a combined total of $500 million of its stock. Under the plan, Viacom will buy back as much as $250 million of its class A and nonvoting class B common stock and warrants. Mr. Mick and National Amusements Inc, a closely held theater chain he controls, will buy up to another $250 million of stock, either separately or together, the company said. Each party will finance the repurchase programs from working capital. National Amusements acquired control of Viacom in June 1987. It already holds 65% of Viacom's class A common stock and about 26% of the class A and class B common stock on a combined basis. Under a similar program begun in August 1993, National Amusements acquired 1.5 million class A common shares and 1.9 million class B shares. The buyback prompted an immediate boost for Viacom's stock, which since July has traded in a tight range near its 52-week low. In composite trading on the American Stock Exchange, Viacom's class B shares gained $2 to $32.875, while its class A shares also rose $2 to $32.375.
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