AOL TIME WARNER TO BUY BACK
$5 BILLION IN STOCK

AOL Time Warner Thursday (1/18) said it plans to buy back up to $5 billion worth of its shares over the next two years.

The move is an obvious reaction to the company's belief that its stock is currently being undervalued. AOL Time Warner will begin the buyback period in February.

In addition, the company said it expects to sell up to $10 billion in debt and equity securities shortly.

AOL Time Warner plans to register with the Securities and Exchange Commission within the next several days, informing them of its intention to sell off debt and equity securities under a shelf registration stipulation. The provision says a company may sell securities in one or more offerings, with the terms to be determined at the time of sale.