14 DAY TRIAL // Logitech International announced yesterday that its shareholders have approved a two-for-one stock split of the company's shares. The stock split, which will apply to Logitech shares, will become effective on July 14, 2006, which is also the moment in which the trading on the SWX Swiss Exchange will reflect the split.
However, trading on the Nasdaq National Market System will reflect the stock split on July 17, 2006.
Logitech's shareholders also approved a resolution created to extend by two years the board's authority in order to increase the share capital of the company by 10 million Swiss francs. Furthermore, to provide easier managing share buyback programs under Swiss law, the shareholders authorized a repurchase of more than 10 percent of its own shares, with the expectation that the repurchased shares that exceed the 10 percent ownership threshold will be cancelled, with shareholder approval, or used for other purposes. Logitech currently holds 4.9 percent of its issued shares.
Earlier this month, Logitech?s board of directors also agreed upon a new share buyback program, meaning that the manufacturer is to invest up to $250 million to purchase its own shares, this subject being under approval of the Swiss Takeover Board.
The new program is said to begin after the company completes its current share buyback program of 300 million Swiss francs (approximately $235 million). Under the current program, announced in June 2005, Logitech has repurchased a total of 4,300,500 shares for 229 million Swiss francs (approximately $178 million), as of May 10, 2006.