ARMONK, N.Y. — International Business Machines, the world's biggest computer company, said Tuesday that it will buy back about 5 million shares of common stock and a series of debentures in transactions valued at $1.1 billion.
While the amount of the shares to be bought was minor compared to IBM's share total, market analysts viewed the buybacks as having a positive psychological impact on the stock, indicating that the company viewed it as a good investment.
IBM said it will redeem all $500 million of its 10.5% debentures due July 15, 2015, at $1,093.60 per $1,000 face value. The redemption is set for Dec. 29.
The computer giant has completed the repurchase of 10 million shares that it said it would buy back under a program approved in May. It now has about 610 million shares outstanding. IBM said the repurchase of securities will be made from general corporate funds.