American Equity to resume buying back shares

By Associated Press
June 27, 2008 | Comments (0)

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American Equity Investment Life Holding Co., which issues annuities through its subsidiaries, said Friday it resumed a 10 million-share repurchase program started last year.

The company had bought 2.3 million of its shares before halting the program earlier this year. It is still authorized to buy up to 7.7 million shares. That would cost about $62.1 million at the stock's current share price of $8.06.

Companies repurchase shares when they think the market may be undervaluing their stock and if they do not have any pressing capital investment needs.

American Equity Investment shares were up 5 cents to $8.06 in afternoon trading.

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