Philips 2007 Annual Report Download - page 52

Philips Annual Report 200758
Share repurchase programs
On January 22, 2007, the Company started a EUR 1.6
billion share repurchase program for capital reduction
purposes through a second trading line on Euronext
Amsterdam. Under this program, shares are repurchased
from shareholders who are tax-exempt or are able to
achieve tax compensation. Under this program, a total
of 25,813,898 shares were acquired worth EUR 0.8
billion. The mechanics of the second trading line and all
transactions in Philips’ shares under this share repurchase
program are published on the Company’s website.
On September 5, 2007, the Company started a
program to repurchase approximately 15 million
additional Philips shares on Euronext Amsterdam in
connection with cumulative obligations resulting from
its existing long-term incentive and employee stock
purchase programs. These repurchases were completed
in 2007 and increased the number of shares held by
the Company versus shares due under the programs.
The shares repurchased are held by the Company as
treasury shares until they are required.
On December 19, 2007, the Company announced that
it plans to repurchase up to approximately EUR 5 billion
worth of Philips shares for the purpose of capital
reduction, which program is expected to be largely
completed by the end of 2008. This program includes
the portion of the Company’s EUR 1.6 billion second
trading line repurchase program that has yet to be
completed. Through its second trading line program,
Philips repurchased EUR 0.8 billion worth of shares
for cancellation in 2007. The Company started the new
repurchase program on January 2, 2008, and will enter
into subsequent discretionary management agreements
with one or more banks to repurchase Philips shares
within the limits of relevant laws and regulations (in
particular EC Regulation 2273/2003) and Philips’ articles
of association. The appropriate authorizations to complete
the program will be proposed to the 2008 Annual
General Meeting of Shareholders.
In accordance with Dutch law, the Company has
informed the Netherlands Authority for the Financial
Markets of its holdings of Philips shares. All transactions
in Philips shares under these share repurchase programs
have been and will be reported on the Company’s
website on a weekly basis.
Capital reduction
On January 18, 2008, the Company started the
procedure for the cancellation of Philips’ shares acquired
or to be acquired pursuant to the share repurchase
programs for capital reduction purposes initiated in
January 2007 and January 2008. The number of shares
to be cancelled shall be determined by the Board of
Management but shall not exceed 114,282,676 shares.
Pursuant to the relevant statutory provisions, cancellation
may not be effected earlier than March 18, 2008.
Legal proceedings
The Company and certain of its (former) group
companies are involved as a party in legal proceedings,
including regulatory and other governmental proceedings,
relating to such matters as competition issues, commercial
transactions, product liability, participations and environmental
pollution. In respect of antitrust laws, the Company and
certain of its (former) group companies are involved in
investigations by competition law authorities in several
jurisdictions and are engaged in litigation in this respect.
Other information
8 Financial highlights 10 Message from the President 16 The Philips Group
Other information
62 The Philips sectors