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Share buybacks

Royal Dutch Shell announce share buy-back programme

Monday, September 24, 2012

Royal Dutch Shell plc announces that it has entered into an irrevocable, non-discretionary arrangement with an independent third party to enable the purchase of ‘B’ ordinary shares, for cancellation, during the period from 25 September 2012 up to and including 1 November 2012 which period includes the 2012 third quarter results close period.

As previously announced, the purpose of the share buy-back programme is to offset dilution created by the issuance of shares for the Company’s Scrip Dividend Programme. At this time, it is less economic for the Company to purchase ‘A’ ordinary shares under the share buy-back programme due to Dutch dividend withholding Tax rules. read more

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Share buybacks create an illusion of gain

THE TIMES (UK): PERSONAL INVESTOR: Share buybacks create an illusion of gain

“Royal Dutch Shell is mounting a £5 billion buyback by way of apology for management lapses. Something must be thrown to the vultures; shareholder’s money is an obvious choice.”

Saturday 20 August 2005

By Graham Searjeant

COUNTRYWIDE, the estate agency chain, achieved a notable stock market triumph when it reported its first-half results. Income was down a fifth and pre-tax profit collapsed from £30.7 million to £3.5 million. The interim dividend was carved from 4.5p to 1p. Yet Countrywide shares stayed firm above 300p, a level implying a complete recovery in the housing market.

The only potentially positive surprise was that Countrywide promised to spend cash saved on the dividend to buy shares back from institutional investors. The board explained that the shares are now owned mostly by Americans, who prefer buybacks to dividends, which suffer withholding tax. UK fund managers, who have notoriously little grasp of risk, did not care either way. So the change was made. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

The ‘quasi-dividend’ of a buy-back programme

Financial Times: The ‘quasi-dividend’ of a buy-back programme

“So why has there been such commiseration when companies such as Royal Dutch/Shell… cast a veil of uncertainty over their share repurchase programmes?”: “This month, shareholders have been disappointed by the impact a $45bn (£25bn) capital spending programme over the next three years will have on Shell’s buy-back programme.”

By Henry Tricks

Published: October 2

According to a joke doing the rounds in the City, dividends are like marriage and share buy-backs are like affairs, requiring no long-term commitment.

So why has there been such commiseration when companies such as Royal Dutch/Shell, Barclays and Boots cast a veil of uncertainty over their share repurchase programmes?

The answer, according to Rolf Elgeti, strategist at ABN Amro, is that investors are viewing buy-backs as “quasi-dividends” instead of the flexible way of returning cash to shareholders they are meant to be. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.

Shell weighs multi-billion share buyback to win over investors

Independent On Sunday: Shell weighs multi-billion share buyback to win over investors

“Shell, the tarnished oil giant…”

By Tim Webb

19 September 2004

Shell, the tarnished oil giant, is considering buying back billions of pounds’ worth of its shares in a bid to restore investor confidence.

The news comes as new chairman Jeroen van der Veer prepares to convince the City this week that he can turn the company around as he unveils his delayed annual strategy presentation.

The Dutchman will announce a wide-ranging review of Shell’s oil exploration and production business in a bid to reverse lagging output and reserves figures. read more

This website and sisters royaldutchshellplc.com, shellnazihistory.com, royaldutchshell.website, johndonovan.website, and shellnews.net, are owned by John Donovan. There is also a Wikipedia segment.