BROOMFIELD - Packaging manfacturer Ball Corp. (NYSE: BLL) announced Wednesday it has agreed to repurchase approximately $100 million of its outstanding common stock through a privately negotiated accelerated stock repurchase transaction with Barclays Bank PLC, using cash on hand and credit.

The transaction will reduce Broomfield-based Ball's outstanding common stock by a total of approximately 1.8 million shares.

Accelerated share repurchases allow corporations to transfer the risk of the stock buyback to the investment bank in return for a premium. The corporation is able to immediately transfer a predetermined amount of money to the investment bank in return for its shares of stock.

"Ball's businesses continue to generate a significant amount of free cash flow, and today's announcement reinforces our ongoing balanced capital allocation strategy of returning value to shareholders via share buybacks," said Scott C. Morrison, senior vice president and chief financial officer.

Under most circumstances, stock repurchase plans benefit stockholders. The reason is fewer outstanding shares mean the remaining shares are worth more.

Ball's stock was trading mid-day Wednesday at $55.78 per share.
Ball Corp. manufactures packaging solutions for beverage, food and household products customers, as well as aerospace and other technologies and services primarily for the U.S. government.
Ball Corp. and its subsidiaries employ 14,500 people worldwide and reported 2013 sales of $8.5 billion.