Windstream eliminates dividend, announces buyback up to $90M
Windstream announced its board of directors has revised the company's capital allocation strategy. The Windstream board has eliminated the company's quarterly shareholder dividend effective immediately and authorized the repurchase of up to $90M 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," it stated. "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, CEO of Windstream.