Irish medical device maker Covidien PLC, with North Haven operations, plans to buy back as much as $2 billion of its ordinary shares to enrich stockholders.
Dublin-based Covidien says its board approved the stock buyback, which will occur from time to time, based on market conditions.
In the 12 months ending June 2011, Covidien says it has returned more than $1 billion to shareholders in dividends and share repurchases, representing more than 50 percent of its free cash flow.
The company has set a goal to return 25 percent to 40 percent of free cash flow to shareholders. The buyback also has the impact of increasing Covidien’s per-share earnings.
