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Insurance industry

Knight Ridder Expands Buyback, Gold Price Drops Most in 2 Years, and Corporate Mergers Gain Momentum

Strategic Insights

— 1 min read

Knight Ridder Inc., the second-largest US newspaper company, has announced a significant expansion of its share buyback program, authorizing the repurchase of up to 6 million additional shares. This move comes on the heels of the company's shares reaching a record high and a 29% increase in net income over the past 12 months. The buyback will be valued at approximately $485 million, based on the company's closing price on Tuesday.

Key Takeaways:

  • Knight Ridder's board has authorized a buyback of up to 6 million additional shares, representing approximately 6.2% of its outstanding shares.
  • The company's shares reached a record high on Tuesday, with a 3/16 increase in price.
  • Knight Ridder's newspaper holdings include the Miami Herald, Philadelphia Inquirer, and San Jose Mercury News.
  • The company's shares have risen 29% over the past 12 months, with a 34% increase in third-quarter net income.
  • Capital Re Corp. has accepted Ace Ltd.'s sweetened $511 million takeover offer over a competing bid from XL Capital Ltd.
  • Ace Ltd., a Bermuda-based insurer, has agreed to pay 0.65 share and cash of at least $1.30 for each Capital Re share, with the cash portion potentially rising to as much as $4.68.
  • Analysts believe that buying Capital Re is a strategic move for Ace and XL Capital to expand into financial guaranties, citing a growing market with more opportunities for growth.
  • Several analysts have provided new coverage and ratings for various companies, including Intimate Brands Inc., Ticketmaster Online-City, Office Depot Inc., Kmart Corp., Park Place Entertainment, Nucor Corp., and American Eagle Outfitters.

Statistics:

  • Knight Ridder's shares have risen 29% over the past 12 months.
  • The company's shares reached a record high of $60 3/16 on Tuesday.
  • The buyback program will be valued at approximately $485 million.
  • Gold prices dropped 3.4% to $290.40 an ounce, the largest drop in two years.
  • Jewelers in Asia reduced gold purchases by 40% after prices soared to a high of $339 an ounce on October 5.

Sources:

  • Bloomberg News
  • Bloomberg News
  • Bloomberg News
  • Bloomberg News
  • Bloomberg News

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