Search
 
Best Practices

Saving Bucks on Buybacks

The SEC's proposal to bring stock repurchases rules in line with evolving market conditions could give companies access to the latest tools to execute large trades anonymously.

By John Hintze | Updated on February 01, 2011

The only time delivery company UPS contemplated breaching the Securities and Exchange Commission’s safe-harbor rules on repurchasing company stock was the morning of the Sept. 11, 2001, terrorist attack on the World Trade Center.

Futures were down before the stock market opened that day, and Gary Barth, assistant treasurer and vice president at the Atlanta-based company, says he explained to his CFO that to support its stock price, UPS would face a market in which the only bids would be its own. That would almost certainly have resulted in UPS’ falling outside the SEC’s safe-harbor rules, which require that companies pay no more to repurchase stock than the highest independent bid or last independent sale price.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.