Wednesday, Meridian Interstate Bancorp Inc. (EBSB), holding company for East Boston Savings Bank, announced that the Board of Directors of the company has adopted a stock buyback program, under the company's 2008 Equity Incentive Plan, which was approved by stockholders on August 19, 2008. Following the news, the company's shares were trading up about 12% on the Nasdaq.
Under the repurchase program, Meridian said it might repurchase up to 414 thousand shares of its common stock. The repurchase program permits shares to be repurchased in open market or private transactions, through block trades.
East Boston, Massachusetts-based Meridian stated that the shares would be repurchased at management's discretion at prices, which management considers to be attractive and in the best interests of both the company and its stockholders, subject to the availability of stock, general market conditions, the trading price of the stock, alternative uses for capital, and the company's financial performance.
The company also noted that the repurchase program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. The repurchase program does not obligate the company to purchase any particular number of shares.
EBSB is currently trading at $8.85, up $0.92 or 11.60% on the Nasdaq.
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