Red Hat , the world’s leading provider of open source solutions, today announced that its Board of Directors has amended the Company’s previously announced program for the repurchase of its common stock. Under the program as amended, the Company is authorized to purchase up to an aggregate of $250.0 million of the Company’s common stock, without regard to amounts previously repurchased under prior programs.
“With today’s announcement, we are increasing our capacity to repurchase Red Hat stock,” stated Charlie Peters, Executive Vice President and Chief Financial Officer of Red Hat. “We believe that repurchase programs enhance shareholder value and demonstrate our confidence in the strength of Red Hat and its long-term opportunities.”
The amended program will expire on the earlier of (i) October 31, 2010, or (ii) a determination by the Company’s Board of Directors, Chief Executive Officer or Chief Financial Officer to discontinue the program.
Repurchases of common stock may be effected, from time to time, either on the open market or in privately negotiated transactions.
The timing and the amount of any repurchased common stock will be determined by the Company’s management based on its evaluation of market conditions and other factors. Repurchases of common stock may also be made under a Rule 10b5-1 plan, which would permit common stock to be repurchased when the Company might otherwise be precluded from doing so under insider trading laws. The repurchase program will be funded using the Company’s working capital. Any repurchased common stock will be available for use in connection with the Company’s stock plans and for other corporate purposes.
Red Hat had approximately 190.1 million shares of common stock outstanding as of November 13, 2008.