AirTouch Plans $1-Billion Buyback

AirTouch Communications Inc. said it will borrow money to buy back as much as $1 billion of its shares, making a big bet on its stock in the wake of Monday’s market rout. Several big companies, led by IBM on Tuesday, also announced expanded stock buybacks to take advantage of the plunge in U.S. stock markets. San Francisco-based AirTouch, which provides wireless phone services, said its directors approved a plan to buy shares on the open market. The company has been looking into repurchasing its shares for a while and decided to push for board approval after watching its stock price rise and fall earlier this week, said AirTouch spokeswoman Kathy Reinhart. Shares rose $2.44 to close at $38.94 on the New York Stock Exchange. AirTouch plans to borrow all of the funds needed for the repurchases, Reinhart said. Companies typically rely on their cash to fund buybacks.