Teamsters Are Ready To Play HARDBALL With UPS, Calls Strike 'Inevitable'

Stock buybacks make sense as a way to disadvantage corporate raiders who

will pounce on a company that has more cash in the treasury than the worth

of its stock by share price.  Say a million-dollar company has 2 million in cash

on hand.  A raider knows they simply need to purchase 500,001 worth of shares

to take possession and control of the company and they can then pay out

the million in cash as a dividend, but wait, before taking the cash out of the

treasury, they take out as many loans as big as they can get, putting a fortune

in the treasury and then pay it out in dividends, sell off parts of the company

to raise even more cash and then walk away from the broken shell they leave

behind.  Of course, instead of using buybacks to reduce the treasury, they should

first pay the workers more and invest in improvements before doing the buyback.