Accelerated share buybacks can be useful for companies who think their shares are undervalued. By reducing the number of shares outstanding, a company can effectively increase the value of each share by increasing the demand for a limited product. In addition, the acceleration of share buybacks allows companies to quickly consolidate their ownership. When companies issue shares, each share constitutes a stake in the company. When there are fewer pending actions, companies may have more control over their financial decisions. The accelerated takeover is part of the $10 billion buyback planned for 2016. Chief Executive Greg Hayes said the takeover uses the “great separation” between the company`s value and the share price. We have just learned that in the event of an accelerated share buyback by an investment bank, a company pays a fixed amount of money in advance in exchange for shares that the bank lends. The bank will then use the money to buy the company`s shares over a period that can take several months.
These newly acquired shares are then used to replace the borrowed shares, but if additional shares remain, the company that initiated the buyback will be required to retain them. If the share price falls during the buyback period, the company will come with more shares, but if it rises, it will end up with fewer shares. Many companies are on the standby and will continue to face critical decisions about how best to allocate their surplus money. Over the years, more and more companies have chosen to buy back their own shares. The statements contained in this press release regarding future plans and expectations, including RSA agreements, the settlement of such agreements, Intel`s share repurchases and Intel`s business prospects, are forward-looking statements that involve a number of risks and uncertainties. Words such as “expected,” “expected,” “intention,” “goals,” “plans,” “thinks,” “seeks,” “seeks,” “appreciates,” “may,” “would,” “should,” “could,” “could,” “could,” and variations in these similar words and expressions must identify these forward-looking statements. Statements based on uncertain estimates, forecasts, forecasts, events or assumptions, including statements about future products and technologies and the expected availability and usefulness of these products and technologies, market opportunities, our valuation, our ability to invest and restore capital, and expected trends in our companies or markets that also identify them with forward-looking statements. These statements are based on management`s current expectations and involve numerous risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements.
The main factors that could lead to actual results being significantly different from the Company`s expectations are, among other things, the ability of a counterparty to enter into an RSA agreement to purchase or borrow shares of Intel shares; Intel`s common share market price for the duration of an RSA agreement; the impact of global and regional economies and market conditions, including illiquidity and other risks of instability in the banking sector and financial services; and the factors outlined in Intel`s July 23, 2020 earnings release, which are presented for Intel`s 8-K form, which will be submitted to the SEC that day, and Intel`s SEC submissions, including the company`s most recent reports on Forms 10-K and 10-Q.