BOSTON — Digital Equipment said it plans to buy back up to 5 million shares of its stock during the next 18 months, a purchase that would cost more than $510 million at current prices.
The repurchase would amount to about 4% of the computer company's 129 million outstanding shares of common stock.
The Maynard, Mass.-based company plans to use the repurchased shares for employee stock plans. The shares would be bought on the open market. Most Digital employees eligible to buy company stock pay about 85% of market price.
Employees, officers and directors of Digital own 9 million shares of the company's stock.
Digital directors announced the buyback plan Thursday following the company's annual meeting.
Stockholders at the annual meeting approved an increase in the number of authorized common shares to 450 million from 225 million. The additional shares would permit stock splits.