April 9, 1999, Gordon Bethune, chairman and chief executive officer of Continental Airlines, reviewed a memorandum to the Board of Directors has recommended to repurchase (repurchase shares) of up to $ 500 million of common stock. Redemption notice, assuming approval by the Board of Directors, will be accompanied by a notice of the investment community from 16 consecutive profitable quarter, Continental in the first quarter net income of $ 78 million. The airline, based in Houston, Texas, was the fifth-largest U.S. airline, based on revenue passenger miles, and has just entered another year record revenue and profit. On April 9, 1999, the closing market price of $ 40.88, $ 500 million redemption will reduce the number of shares outstanding of 12.2 million shares, or 16% (on a fully diluted basis). Bethune believes that the best signal current expectations for continued strong financial performance in the Continental was to announce a massive share repurchase program. "Hide
by George GC Parker, Margot Sutherland Source: Stanford Graduate School of Business 21 pages. Publication Date: 01 Oct 1999. Prod. #: F256-PDF-ENG
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