Buy back do work the way you implied but in the event where you have 300m outstanding shares not when you have 3 billion + where even to remove 10% of outstanding shares company need to run this buy back for years so this $1b is total waste of funds. As I said earlier, do 2 for 1 consolidation and then issue special dividend if you have extra cash.
The share price rise in WBS is purely because of dividend and not because of buy-back or company performance.
WBC Price at posting:
$27.89 Sentiment: None Disclosure: Held
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