Ibm Authorizes Stock Buyback Plan

International Business Machines Corp.’s board on Tuesday authorized the buyback of up to $3.5 billion of its common stock, the largest in a recent series of IBM repurchases.

The world’s biggest computer company said it plans to buy the stock on the open market, depending on market conditions.

The buyback exceeds the previous four repurchases of $2.5 billion each initiated by IBM in January 1995, the most recent in April. Stock buybacks are used by corporations to increase their stock price and make use of excess cash.

IBM’s stock has rocketed higher from about $90 early this year, boosted by a decided rebound in profits from the company’s slump of the early 1990s.

IBM stock closed up 37-1/2 cents at $158 Tuesday on the New York Stock Exchange.