Vodafone to buyback a bn pound worth shares

Vodafone today said it would buy back shares worth about one billion pounds (Rs 8,500 crore approx) from the market.

"This action reflects the board's belief that the share price significantly undervalues Vodafone," the company said.

The shares of Vodafone reacted positively to the buyback announcement and were trading with a gain of about 4 per cent.

The maximum share price payable for any shares would not be higher than 105 per cent of the average of the middle market closing price of the company's share price on LSE for the five business days immediately preceding the trade date on which any shares are purchased.

"Any shares repurchased will be held in treasury," the company said.

The shares were trading 3.5 per cent up at 133.5 pence after rising to an intra-day high of 134 pence early this morning.

Source: http://www.mid-day.com/news/2008/jul/230708vodafone1.htm