Dana Holding Corp. said Monday it has an agreement with JP Morgan Chase Bank to buy back $200 million worth of company stock.
The Maumee auto-parts supplier said it will get about 7.3 million outstanding shares in the the accelerated share repurchase program. The total number of shares is dependent on Dana's stock performance. The deal is expected to be finished by the end of the year.
Dana announced in June it was expanding a $250 million share repurchase program to up to $1 billion. Including the accelerated share repurchase announced Monday, the company is already more than three-quarters of the way there.
Dana said it has now repurchased more than 34 million shares of stock at a cost of about $775 million.
Companies often enter into share repurchase agreements as a way to boost the value of their shares, thus pleasing shareholders.
Shares of the company's stock were up 62 cents, or 2.8 percent Monday, closing at $22.53. Dana stock is up more than 44 percent year-to-date.
The company said it will continue share repurchases using the remaining $225 million under the program from time to time in the open market or through privately negotiated transactions.
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