P.M. BRIEFING : CBS Considers Share Buyback
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NEW YORK — CBS Inc. is considering a share repurchase program in the wake of its disclosure that it expects a fourth-quarter loss and lower earnings next year, a published report said today.
The media company’s stock has fallen in the wake of the earnings forecast on Nov. 19.
The Wall Street Journal said today that people familiar with the proposal said CBS is considering a so-called Dutch auction as one share buyback option.
In a Dutch auction, a company states the number of shares it wants to buy in a specified period and gives a price range within which shareholders may tender their shares. The company then selects a price in the range that will enable it to buy all the shares it needs.
That type of buyback might enable CBS to buy back part or all of the 8% stake held by the estate of the late CBS founder, William S. Paley.
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