Paint and chemicals maker Rohm & Haas said after U.S. markets closed Monday that its board approved a $2 billion stock buyback plan that will be executed in two stages.
Shares leaped about 12 percent on the news Tuesday.
The company said it will first launch an accelerated $1 billion buyback in the third quarter, which will be funded with new debt. Then, using available cash, the remaining $1 billion shares will be able to be repurchased in 2008 through 2010.
The company currently has about 216.7 million outstanding shares.
Rohm & Haas plans to execute the first stage of the program after completing an existing $1 billion stock buyback program.