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Windstream Eliminates Dividend-Shares Tank PDF Print E-mail
Tuesday, 08 August 2017 10:58

The Windstream Board has eliminated the company's quarterly shareholder dividend effective immediately prompting a 27% dive in the share price. The move, effective immediately, was announced in a separate release from its disappointing second quarter results. The company has missed profit estimates by big margins in each of the past four quarters and shares have plummeted from a high of $10.45 last September to below $2.50. Windstream Holdings, Inc. announced its board of directors has revised the company's capital allocation strategy.

The Board also authorized the repurchase of up to $90 million of the company's common stock, effective through the first quarter of 2019. Windstream will opportunistically purchase shares through open market purchases and pay down debt.

"Our equity is undervalued especially given our improved strategic direction with enhanced product capabilities, management talent additions and anticipated acquisition synergies of $180 million. The elimination of the dividend along with the $90 million buyback program and delevering that will also occur will create value for all our stakeholders. This is the right path for our company," said Tony Thomas, president and chief executive officer of Windstream.

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