Firms Plan Buybacks to Show Market Support

Major corporations are expected to demonstrate their confidence in U.S. financial markets by increasing the pace of stock buybacks when trading resumes, investors said.

“Any well-financed, cash rich company is going to look at it very, very seriously,” said Uri Landesman, chief investment officer of AFA Management Partners in Greenwich, Conn., which manages about $250 million.

FleetBoston Financial Corp., the seventh-biggest U.S. bank, said on Sunday that it plans to spend as much as $4 billion to buy back stock through the end of next year. The plan would allow the repurchase of as much as 11% of the Boston-based bank’s shares outstanding.

“We’re in a strong financial position right now, and this is an opportunity to take some action to support the market and to support our shareholders,” spokesman James Mahoney said.

At least 25 U.S. companies announced new or extended share buyback programs since Tuesday, including American International Group Inc., Cisco Systems Inc. and Pfizer Inc.

The Securities and Exchange Commission last week eased restrictions on company repurchases to help keep stocks from tumbling after the markets’ expected reopening today.