Bank of America Directors Authorize Repurchase of up to 130 Million Shares
The purchases would be made from time to time either in the open market or through private transactions, including accelerated buyback programs, over the next 18 to 24 months. The 130 million shares represents approximately 7.5 percent of Bank of America's 1.74 billion shares outstanding on March 31, 1999.
``Due to our sizeable earnings stream, Bank of America has, and is generating, capital in excess of what is needed to support our operations and to make necessary and profitable future investments in our business,'' said Hugh L. McColl Jr., chairman and chief executive officer. ``The most efficient way of returning this excess capital to our shareholders is to buy back our stock.
``This action reflects our strategies to focus efforts on developing our current franchise, to more efficiently use our balance sheet, and to significantly improve our returns in various business lines,'' he said. ``The combined result of these initiatives should be to enhance shareholder value significantly.''
Bank of America Corporation, with $614 billion in total assets, is the largest bank in the United States. It has full-service operations in 22 states and the District of Columbia and provides financial products and services to 30 million households and 2 million businesses, as well as providing international corporate financial services for business transactions in 190 countries. Bank of America Corporation stock (ticker: BAC) is listed on the New York, Pacific and London stock exchanges and certain shares are listed on the Tokyo Stock Exchange.
SOURCE: Bank of America Corporation