US: Monster plans US$250m share buyback
Monster has authorised another share buyback programme
Monster Beverage Corp's directors have authorised a US$250m buyback of the group's outstanding common stock.
The move represents the second buyback in three months, after the California-based energy drinks group okayed a $500m share repurchase in August. “The company expects the share repurchases to be made from time to time in the open market or through privately-negotiated transactions,” it said in a statement today (14 November).
Monster, which announced a slowing of nine-month net profits last week, has seen its share price dive in recent weeks as the company has dealt with a series of issues. It is facing action from New York's attorney general over the marketing of its products, while two Illinois senators are pushing for a wider crackdown against the energy drinks market.
Meanwhile, the firm has been hit with a lawsuit in the US from the mother of a 14 year-old girl who died after allegedly drinking two cans of 24-ounce Monster energy drinks. Monster's CEO Rodney Sacks said last week the claims in the lawsuit are “totally baseless”.
It also facing scrutiny from the US Food and Drug Administration after it emerged that Monster product have been cited in relation to the death of five people since 2007.
The company insists it products are safe.
Sectors: Soft drinks
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