DOW JONES NEWSWIRES
Aetna Inc. (AET) said it will buy back an additional $750
million of its common stock, the health insurer's latest
shareholder friendly move.
Aetna's latest buyback increase adds to the approximately $295
million remaining under its prior authorization. In September, the
company's board also approved the addition of up to $750 million to
its stock-buyback program.
Aetna had about 349.7 million shares outstanding as of Dec.
31.
Many companies are spending more money on dividends and stock
repurchases to reassure shareholders at a time of economic
uncertainty.
Earlier this month, Aetna reported its fourth-quarter earnings
rose 73% as it continued to benefit from light medical costs during
a sluggish pace of patient visits to hospitals and doctors'
offices. This trend, brought on by the weak economy and high
unemployment, fueled earnings gains and rising stock prices across
the managed-care sector last year.
Shares rose 0.4% to $46.88 in recent trading. The stock is up
11% so far this year.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com