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AOL to buy back $600M in stock, declares dividend

NEW YORK — AOL Inc. said Monday that it will buy back about $600 million in its common stock through an accelerated repurchase program and declared a special dividend of $5.15.

The New York-based Internet company said the moves are part of a plan to return $1.1 billion to the company’s shareholders.

AOL shares rose $1.53, or 4.7 percent, to $34.45 in premarket trading.

The stock will be bought back through an accelerated stock repurchase agreement with Barclays Bank PLC using a previous stock buyback authorization and an incremental $10 million approved by the company on Sunday.

AOL will pay the $600 million at the beginning of the agreement and expects to receive most of the shares before the end of the year, including about 4 million shares that Barclays will deliver to AOL on Thursday.