Dana Holding Corp. announced Friday it will significantly expand a previously announced share repurchase program, committing up to $1 billion over the next two years.
The Maumee-based supplier of automotive parts said in October it would spend up to $250 million to buy back shares of its stock. On Friday, the company said it had spent about $100 million so far, and committed another $900 million.
“This expanded program reflects confidence in the long-term prospects of our business and our commitment to delivering value to all of our shareholders,” Dana’s chief executive, Roger J. Wood, said in a statement. “We continue to review our capital structure with the goal of best utilizing our strong balance sheet to maximize shareholder value.”
The company said it will buy back shares in the open market or through private transactions over two years.
News of the expanded buyback sent shares considerably higher Friday, with Dana closing at $19.26 per share, up 5.8 percent.
Dana’s most recent quarterly filing with the U.S. Securities and Exchange Commission showed $981 million in cash and cash equivalents as of March 31.
Company spokesman Jeff Cole said Dana has been investing in technology and views this as a good time to boost shareholder value.
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