FRANKFURT - German stock exchange operator Deutsche Boerse said late Tuesday it was planning to launch a share buy-back as it seeks to mend fences with rebel shareholders who forced the company to abandon its bid to buy the London Stock Exchange (LSE).
It said in a statement that as part of a capital reorganisation designed to improve efficiency, it would ask its next general shareholders meeting in late May for authorisation to buy-back up to 10 percent of its own stock.
It added that it would also look at other options on capital management, which analysts suggested could be a reference to a future special dividend payment.
Earlier this month, Deutsche Boerse withdrew a bid worth just under two billion euros (2.6 billion dollars) for the LSE under pressure from its large investment fund owners and promised that a significant part of the funds involved would instead be returned to shareholders.
03/23/2005 03:10 GMT