BAE shares jump on £1bn buyback plans

British defence giant BAE has started a three-year share buyback programme of up to £1bn, despite reporting declines in full year pre-tax profits and revenues.

Europe's largest defence contractor said today it would immediately start buying back shares. However, full implementation of the buyback is still hinged on "a satisfactory resolution of price escalation negotiations" in its attempts to supply Saudi Arabia with Typhoon aircraft. "There are a lot of green shoots in the business to show that the resilience is there, and this is why we feel confident to do a share buyback," said BAE chief executive Ian King. "We have made excellent progress in international markets. We have closed the year with a strong balance sheet and are well posi...