LAKE FOREST, Ill.—Tenneco Inc.'s board of directors authorized the repurchase of up to 400,000 shares of the company's outstanding common stock over the next 12 months.
The firm said based on recent share prices, buying that many shares would represent an outlay of nearly $23 billion.
The repurchase program is intended to offset dilution from shares of restricted stock and stock options that were issued to employees in 2014 under the automotive supplier's long-term compensation plan, the company said.
Tenneco said it anticipates acquiring the shares through open market or privately negotiated transactions, which will be funded through cash from operations. The program does not obligate Tenneco to make repurchases at any specific time or situation.
Tenneco designs, manufactures and markets clear air and ride performance products and systems for automotive and commercial vehicle original equipment markets and the aftermarket.