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Sirius board OKs additional $2 billion buyback

NEW YORK (AP) -- Sirius XM Radio Inc.'s board has approved an additional $2 billion buyback.

Its stock climbed before the market open on Thursday.

The satellite radio company said Thursday that it will fund the repurchases through available cash, future cash flow from operations and future borrowings. It may buy the stock on the open market or in privately negotiated transactions, including potential deals with Liberty Media and its affiliates. Liberty Media owns a majority stake in Sirius.

Sirius also said that it will buy back $500 million shares from Liberty Media and its affiliates. The stock is expected to be bought in three installments in November, January and April. The company said there may be accelerated buybacks under certain circumstances.

Liberty Media has not participated in repurchases with Sirius before, the company said. Buying stock from Liberty Media will complete Sirius' existing repurchase program and mark the first transactions under the new buyback.

Sirius has repurchased about 476.5 million shares to date for approximately $1.6 billion. When it completes the Liberty Media transactions Sirius will have repurchased about $2.1 billion of its stock.

Shares of Sirius added 13 cents, or 3.4 percent, to $3.96 in morning trading.