XPO announces share buyback

XPO Logistics

The board of directors of XPO Logistics have authorised the company to buy back $1bn of its common stock.

The move follows a busy few weeks for XPO. The company felt compelled to respond to a report from a “short selling” firm, Spruce Point Capital Management” which criticised the company’s financial position. Rumours that it had become a takeover target soon surfaced.

In a statement, regarding the share buyback, the company said “The timing and number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, alternative investment opportunities, and funding considerations. XPO intends to fund the repurchases from existing cash, borrowings on XPO’s revolving credit facility and/or other financing sources.”

Source: XPO Logistics