Fidelity National Financial, Inc. Announces Three-Year Stock Repurchase Program
May 10, 2002
IRVINE, Calif., /PRNewswire-FirstCall/ -- The Board of Directors of Fidelity National Financial, Inc. (NYSE: FNF) has approved a three-year stock repurchase program.
Under the multi-year program, the Company intends to devote a portion of its annual cash flow from operations to the systematic repurchase of shares of its common stock. The Company expects to repurchase approximately $75 million of its common stock in the first year of the program. Cash flow from operations was $428 million in 2001 and $165 million in the first quarter of 2002.
Purchases may be made from time to time by the Company in the open market, in block purchases or in privately negotiated transactions depending on market conditions and other factors.
"In light of the market's valuation of our Company, we believe the repurchase of our stock is an attractive investment," said Chairman and Chief Executive Officer William P. Foley, II. "This systematic share repurchase program recognizes the strength of the cash flow generation of FNF and we believe that consistent stock repurchase is a solid use of our cash flow and an enhancement to long-term stockholder value. Devoting a percentage of cash flow also provides flexibility to continue to evaluate acquisition opportunities and focus on strategic growth. Stock repurchase provides a benchmark for comparing the attractiveness of acquisitions and their accretion to net earnings and cash flow."
"We do not plan to incur any debt or affect leverage ratios in the execution of this stock repurchase program," said Chief Financial Officer Alan L. Stinson. "We remain committed to improving both our long-term debt and financial strength ratings with the major rating agencies."
Source: Fidelity National Financial, Inc.