Caterpillar Completes Buyback Authorization With $1.7 Bln Accelerated Repurchase

(RTTNews) - Caterpillar Inc. (CAT) announced it has entered into a definitive agreement with Citibank, N.A. to purchase about $1.7 billion of its common stock under an accelerated stock repurchase transaction. This repurchase is in addition to the $2 billion of stock repurchased in 2013.

The company said pursuant to the agreement, it expects immediate delivery of approximately 18 million shares based on current market prices. The final number of shares to be repurchased and the aggregate cost to Caterpillar will be based on Caterpillar's volume-weighted average stock price during the term of the transaction, which is expected to be completed in March of 2014.

Caterpillar said the current transaction will complete the $7.5 billion repurchase authorization originally approved by Caterpillar's Board of Directors in 2007 and set to expire on December 31, 2015.

In anticipation of the completion of the 2007 authorization, the company's Board of Directors approved a new $10 billion stock repurchase program, which will expire on December 31, 2018.