Share Buybacks To Rise Next Year

Companies across the globe may announce several share buyback plans in 2011, heads of capital equity markets at global banks said in a conference in London on Tuesday.

Companies may opt for share repurchases due to improvement in economies and increased clarity in the recent regulatory changes. Equity markets are likely to recover going ahead, despite sovereign debt continuing to be an area of concern over the next few years, the deal makers said.

The industry experts added, however, that most of the recovery would be in the emerging markets. Head of equity capital markets for EMEA for Bank of America Merrill Lynch, Craig Coben, explained that emerging markets were becoming increasingly attractive owing to their growth potential, which is higher than that of more mature markets.

Stock buybacks would become a preferred way to offer shareholder returns, since dividends imply a longer term commitment of capital, the deal makers said.

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