By John Byczkowski
Enquirer staff writer

Federated Department Stores Inc.'s stock rose more than $2 a share Tuesday after its board of directors authorized another round of stock repurchases.

The company, sitting on more than $900 million in cash, was authorized by the board to buy back $750 million in stock, the eighth such authorization since 1998. Federated now has $1.29 billion set aside to buy back stock, and said it would likely repurchase stock worth $700 million to $900 million this year.

In 2003, the company bought back about 5.7 million shares for $280 million in cash.

The number of shares in the company grows as executives exercise stock options, said Gerald Hirschberg, an analyst who follows Federated for Standard & Poor's in New York. He said Federated regularly buys back shares to maintain the number of shares and prevent dilution of its earnings per share.

He added that spending the cash on buying stock would not hinder the company's plans to build and renovate stores.

The company said it would also retire $350 million worth of 8.5 percent senior notes, due 2010.

Federated's stock gained $2.11 a share, to close at $46.32.

E-mail johnb@enquirer.com