Fresenius Kabi Pharmaceuticals (APCVZ)

[JI SUNG PARK]

When a company buy backs its own shares, it is consider treasury stock. Why would they want to do that? 5 reasons: 1) To provide tax-efficient distributions of excess cash to shareholders. 2) To increase earnings per share and return on equity 3) To provide stock for employee stock compensation contracts or to meet potential merger needs 4) To thwart takeover attempts or to reduce the number of stockholders 5)To make a market in the stock.

Some publicly held corporations have chose to go private. Companies often accomplish such a procedure through a leverage buyout, in which the company borrows money to finance the stock repurchases.