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Practical Considerations Impact on income statement/eps Impact on book value balance sheet Negative equity? Implementation Self tender (share.

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Presentation on theme: "Practical Considerations Impact on income statement/eps Impact on book value balance sheet Negative equity? Implementation Self tender (share."— Presentation transcript:

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6 Practical Considerations
Impact on income statement/eps Impact on book value balance sheet Negative equity? Implementation Self tender (share repurchase) —Fair? Special dividend —Taxes? If $ 1 billion is good, why not $2, 3, 4 or 5 billion??? When does it stop?

7 What happened to UST? They never did the big recap
Increased debt little-by-little Repurchased shares Always kept the book value of equity greater than zero! Acquired by Altria in Jan 2009, $10.4 B in pure cash Smokeless is now center of Altria global strategy

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