Shares in Germany's E.ON were top gainers among European blue chips with a near-6 per cent climb after the world's largest utility said it would buy back €7 billion worth of shares.
E.ON shares rose 5.7 per cent to 124.01 this morning, hitting a record high earlier in the session at €125.08 and were the top gainer on the DJ EuroStoxx 50 index.
The share buyback, the first under chief executive Wulf Bernotat and the second in the company's seven-year history, is a "flexible" instrument to return value to shareholders, Mr Bernotat said.
A buyback was therefore preferred over paying a special dividend, he said.
E.ON last paid a special dividend in 2006 for the sale of specialty chemicals maker Degussa.
The utility, flush with money from asset sales and soaring energy prices, announced late last night it also plans to raise its dividend and invest €60 billion.
For an expansion in the Russian power market, in Turkey and in southeastern Europe, it aims to spend €6 billion and plans to invest €3 billion in renewable energies, potentially as far as the US, the company added.
E.ON failed with a €42 billion bid for Spanish group Endesa.