CVS Caremark (CVS) said on Wednesday that its board has approved a new stock buyback program valued at $4 billion in a move that highlights both its confidence in the business and commitment to shareholders.
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The largest U.S. pharmacy chain said the authorization, which is effective immediately, allows the company to buy its shares from time to time through the open market, privately negotiated deals, accelerated share repurchases and derivative transactions.
Were very pleased with the boards decision, said CVS chief executive Dave Denton, who added that it reflects its continued confidence in the future growth of the company and its ongoing effort to increase shareholder value.
The Woonsocket, R.I.-based retailer said it intends to complete its $2 billion stock repurchase program authorized in June this year as expected. It expects to buyback at least $1 billion of the latest authorization before the start of 2012.