A BAE share buyback to the tune of £1bn has boosted the defence giant’s share price by as much as six percent. On a day of few risers for the FTSE 100, BAE’s shares were the top risers on the day with a strong gain of 4% at the close of the market.
The BAE share buyback announcement increased the share price of the company, despite a 6% fall in underlying profit during 2012, with sales falling by 7%.
Back in November, well respected fund manager Neil Woodford expressed a belief that BAE should operate a share buyback programme in order to increase its share price, rather than focus on deal making.
