Not the sort of stock that excites these pages but would anyone be willing to educate me on why Boots (for the past 10 days or so) have been buying large quantities of their own shares in order to cancel them. At least thats what I think they look to be doing. Between 5 and 20 Aug they have bought and cancelled a total of 3.5 mil

I see this weeks Shares Mag) that they are one of only a few who have a surplus in their Pension Fund

Between 5th and 20th Aug Boots plc have now bought a total of 3.5 mil of their own shares apparently in order tpo cancel them - Why - anyone out there with an answer

In theory it increases share holder value. Because as a shareholder your shares will own more equity in the company.

Usually only done if they have no use for spare cash and think the shares are undervalued. A more tax effiecient way of return cash to shareholders rather than with dividends.

Sometimes there are more sinister reasons put forward for buy backs, but that's the general gist.

Scripophilist - thanks -

Looks a fair swing.