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Dover board OKs buyback of $1 billion in stock

DOWNERS GROVE, Ill. (AP) -- Dover Corp. said Monday that its board approved an additional stock buyback program, allowing it to repurchase $1 billion of its common stock over the next 12 to 18 months.

The Downers Grove, Ill-based company said the program will be funded with cash on hand, proceeds from sales of businesses and free cash flow.

Dover makes products including communications equipment, machinery used in oil and gas drilling and printing and identification technology. It also said Monday that it plans to sell certain non-core businesses which serve the electronic assembly and test markets.

Dover said the stock buyback will help boost value for its shareholders, while the sales of the businesses will let it focus on its main energy, refrigeration and food equipment, communication components, product identification, and fluids businesses.

The company added that it expects to close on couple of acquisitions by the end of the year.

In morning trading, Dover shares added $1.07, almost 2 percent, to $59.65.