ABB Ltd. is looking to expand its power grid sector, surprising markets by offering a $4-billion share buyback to bolster shareholder returns. This decision will see investors gaining cash from recent disposals helping the stock gain about 2.9% in Swiss trading as a result.
With the leadership change in September 2013, the new strategy has been to sell smaller divisions within the company. The buyback may aid the company to reverse a decline in shares. ABB’s new long-term goals include increasing operational earnings per share by 10% to 15% CAGR in the next five years. And with this new focus comes a direct approach to building structures to more easily incorporate renewable energy technologies into grids.
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