Allison Transmission Sets New $1 Billion Stock Buyback Program

Allison Transmission Holdings Inc. said Wednesday it has set a new $1 billion stock repurchase program, lasting through Dec. 31, 2019. That is in addition to the current $500 million stock buyback program, which the car transmissions maker expects to complete by the end of 2016. The new repurchase program follows the completion of review of the company's business and potential initiatives to enhance shareholder value. The company said it consulted with a number of shareholders, including its largest shareholder ValueAct Capital, its fourth-largest shareholder Ashe Capital Management and its fifth largest shareholder Longview Asset Management. Allison's stock, which was still inactive in premarket trade, has rallied 20% year to date, while the S&P 500 has gained 6.7%.