NAPERVILLE, Ill.—Tellabs Inc. announced that its board authorized a new share buyback program for up to $300 million of the company’s outstanding common stock.
The repurchase plan follows Tellabs’ completion of an earlier $300 million share buyback program announced in February 2005.
We are confident that Tellabs is well-positioned to grow with customers who are industry leaders, in markets that are growing faster than overall capital expenditures,” said Krish Prabhu, president and chief executive officer of Tellabs. “We believe that the current market price for Tellabs stock does not accurately reflect Tellabs’ future prospects.”
Tellabs is under scrutiny as vendors in the telecom infrastructure sector continue to consolidate through mergers and acquisitions. Motorola Inc., also based in Chicago’s suburbs, has been talked as a likely partner for Tellabs.
News of the stock buyback program didn’t faze Wall Street investors as trading of Tellabs’ stock remained flat at $9.37 per share, well below its 52-week high of $17.28 per share.
