Ibm Takes Steps To Boost Stock

IBM’s board of directors moved to boost the price of the computer company’s stock Tuesday by voting to repurchase up to $2.5 billion shares on the open market.

The board decided against a second share-boosting move - increasing its dividend. The 25 centper-quarter payout remained the same, International Business Machines Corp. announced.

Chairman Louis Gerstner said the company’s financial position has improved significantly in the last year, its balance sheet is strong and a repurchase is an efficient way of increasing shareholder value.

The move didn’t impress investors as IBM shares fell 12 cents to $71.62 on the New York Stock Exchange at midday. The stocks did rally to close up .