<a href="http://www.nintendo.com">Nintendo</a>, looking to improve its return on equity and stave off any possible hostile takeover, announced that it plans to buy back about 10% of its outstanding stock, amounting to 14 million shares.
No indication was given as to when this stock repurchasing program would occur. Nintendo President Hiroshi Yamauchi stated, "We have more than 800 billion yen ($6.5 billion) in cash and deposits, which is just too much. We aim to boost our return on equity by a share buyback." News of the buy-back plan was greeted with enthusiasm by investors, sending Nintendo share price up 8% on the day. Its shares have gained 33% over the past 12 months.
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