LAKE FOREST, Ill. (Jan. 17, 2014) — Tenneco Inc.'s board of directors has approved a share repurchase program.
The board has authorized the repurchase of up to 400,000 shares of the company's outstanding common stock over the next 12 months. Based on the share price recently, buying that many shares would represent an outlay of nearly $23 million.
The repurchase program is intended to offset dilution from shares of restricted stock, Tenneco said, and stock options that were issued to employees in 2014 under the automotive supplier's long-term compensation plan.
Lake Forest-based Tenneco said it has completed similar repurchases of common stock in 2011, 2012 and 2013, "while remaining committed to further improving its financial position and investing in strategic initiatives."
The company anticipates acquiring the shares through open market or privately negotiated transactions, which will be funded through cash from operations. The repurchase program does not obligate Tenneco to make repurchases at any specific time or situation, according to the company.
Tenneco designs, manufactures and markets clean air and ride performance products and systems for automotive and commercial vehicle original equipment markets and the aftermarket under the principal brand names Monroe, Walker, XNOx and CleviteElastomer.