Kodak previously outlined the plan on October 24, after Wilshire Associates Inc, consultant to the US pension plan, recommended eliminating investments in specialty sector US equities (see Kodak Says Its DB Plan Is Fully Funded ).
“This purchase should not be interpreted as a change in Kodak’s share repurchase strategy,” said Kodak Chief Financial Officer Robert Brust. “We have consistently indicated that our priorities for the use of cash are supporting the dividend, paying down debt, funding targeted acquisitions and share repurchase as appropriate.”
Kodak based the price of the repurchase on the volume weighted average price for a period between November 4 and December 6. The total cost of the transaction was estimated to be $260 million, with $55 million going towards a separate share repurchase program.