Ambac Financial jumps after approving $50 mln stock repurchase program

Octave Specialty

13/11/2024 17:01

** Shares of property and casualty insurer Ambac Financial
 AMBC.N  jump as much as 13.2%; last up 9.8% at $12.85
    ** AMBC on Tuesday approved an acceleration of its $50 mln
share buy-back program, which it will commence immediately
    ** Company may "opportunistically" repurchase shares at
management's discretion till 2026 end; it intends to limit
purchases to $15 mln prior to the sale of its legacy financial
guarantee business - AMBC
    ** AMBC in June had struck a $420 mln deal to sell its
legacy financial guarantee business to Oaktree Capital, as it
looks to sharpen its focus on its core business 
    ** Roth MKM says AMBC will repurchases shares if the price
remains at its current depressed levels but cautions that the
company might rather use funds for acquisitions and likely stop
stock repurchasing shares, once it is around the $15 level
    ** Continue to like the shift underway and believe success
could happen quicker depending on how successful AMBC's
acquisitions will be over the next few years - Roth MKM 
    ** As of last close, AMBC shares down 29% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))