Union Pacific Corp. directors approved the early renewal of a share repurchase program, authorizing the buyback of up to 60 million common shares by Dec. 31, 2017.
The new authorization takes effect in January 2014. The new four-year authorization allows for the repurchase of an additional 13 percent of shares outstanding of the largest U.S. railroad operator.
“This new share repurchase authorization demonstrates Union Pacific's continued long-term commitment to increasing shareholder value, while maintaining our strong, investment grade credit ratings,” said Rob Knight, Union Pacific chief financial officer.
Since January 2007, Omaha-based U.P. has repurchased about 19 percent of its outstanding shares at a total cost of nearly $8.6billion, with an average purchase price of $84.50 per share.