RadioShack has raised the ceiling of its stock repurchasing program from $290 million to $500 million, ending speculation of a leveraged buyout by equity investors.
“After careful evaluation of the options available to the company and capital requirements of our business going forward, the board has concluded that it is now appropriate to devote a part of our significant cash holdings to an expanded share repurchase program,” said chairman/CEO Julian Day.
The company had reportedly shopped itself aggressively over the past few months, and supposedly entertained bids from several private-equity firms.
Day added that “We are pleased with the improvements we have achieved in our business and with the strengthening of our brand. We are excited about opportunities for further growth, particularly in our mobility business, and believe that the combination of our business strategy and active balance sheet management will position us well for the future.”