ABB plans $4 billion share buyback following CEO’s new strategy
Switzerland, Zurich: ABB announced a $4 billion share buyback after ABB CEO Ulrich Spiesshofer said he seeks to boost shareholder returns.
“The company intends to allocate approximately three quarters of the programme for a reduction of share capital and the remainder to support its employee share plans globally.” the Swiss manufacturer of power transformers said.
Spiesshofer’s aims are to make the company more profitable and reverse a share decline this year that was worse than Siemens’ following Joe Kaeser, CEO of Siemens pledge to focus on electrification and automation, challenging ABB. Also, GE’s takeover of Alstom’s energy adds another strong competitor in power transmission, reports Bloomberg.
Spiesshofer has also pledged to return the division ABB’s Power Systems which has been grappling with delays to complex renewable energy projects that have weighed on earnings, which links offshore wind farms to the grid, to profitability and hired consultants Alix Partners Ltd. to help with the turnaround.