XPO Logistics has set out plans to buy back up to $1 billion of its shares, a day after a report by an activist invest criticised the business.
It responded to the report, saying: “Today’s report from a short selling firm is intentionally misleading, with significant inaccuracies, and fails to reflect that XPO has delivered strong performance for its long-term shareholders.
“The facts demonstrate that the short seller’s claims, most of which have been previously floated and refuted, are largely baseless and an attempt to string together unrelated pieces of incorrect information to paint an inaccurate impression of the company.
“Of particular note, our accounting practices are based on Generally Accepted Accounting Principles and are audited annually and reviewed quarterly by our independent auditors.
“XPO’s long-term financial outlook remains positive. We will communicate directly with our investors and customers regarding this short seller’s report.”
XPO’s share repurchase authorisation permits shares to be repurchased from time to time at management’s discretion.
“The timing and number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, alternative investment opportunities, and funding considerations. XPO intends to fund the repurchases from existing cash, borrowings on XPO’s revolving credit facility and/or other financing sources. The share repurchase authorization does not obligate XPO to repurchase any specific number of shares, may be suspended or discontinued at any time,” it said.