Share capital and reserves continued held as treasury shares and call options

Share capital and reserves continued held as treasury

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Share capital and reserves (continued) held as treasury shares and call options held for hedging share scheme grants provided to employees during the year. Movements in shares are as follows: Own shares and Treasury shares Treasury shares for options held by repurchased under hedging share scheme employee share trusts buyback programmes grants to employees Total own shares Number Purchase Number Purchase Number Purchase/(sale) Number Purchase of shares consideration of shares consideration of shares consideration of shares consideration million £ million million £ million million £ million million £ million At 30 June 2007 . . . . . 33 267 271 2,240 10 93 314 2,600 Share trust arrangements . . . . . . (7) (49) (7) (49) Shares purchased . . . . . 11 124 11 124 Shares cancelled . . . . . (12) (105) (12) (105) Shares used to satisfy options . . . . . . . . . . (1) (11) (1) (11) At 30 June 2008 . . . . . 26 218 259 2,135 20 206 305 2,559 Share trust arrangements . . . . . . (3) (30) (3) (30) Shares purchased . . . . . 6 63 6 63 Shares cancelled . . . . . (30) (247) (30) (247) Shares transferred . . . . (6) (47) 6 47 Shares used to satisfy options . . . . . . . . . . (3) (3) At 30 June 2009 . . . . . 23 188 223 1,841 32 313 278 2,342 Share trust arrangements . . . . . . (8) (58) (8) (58) Share call options purchased . . . . . . . . 23 23 Shares sold to fund call options . . . . . . . . . . (3) (24) (3) (24) Shares used to satisfy options . . . . . . . . . . (3) (30) (3) (30) At 30 June 2010 . . . . . 15 153 223 1,841 26 259 264 2,253 During the year, call options over 8 million shares were purchased at a cost of £24 million to satisfy share grants awarded to employees. These options were held by the employee share trusts. Call options denominated in US dollars of £1 million are included in other financial assets. In addition, at 30 June 2010, employee share trusts funded by the group held shares in the company as follows: 12 million ordinary shares held in respect of long term incentive plans for executive directors and senior executives and 3 million ordinary shares held in respect of grants under UK, Irish and US savings-related share option schemes. The market value of these shares at 30 June 2010 was £159 million (2009 – 22.6 million shares, market value £197 million; 2008 – 26.2 million shares, market value £241 million). Dividends are waived on all shares in the company owned by the employee share trusts. During the year ended 30 June 2010, no ordinary shares were purchased to be held as treasury shares (2009 – 6 million shares, aggregate nominal value £2 million, 0.3% of issued share capital (excluding treasury shares); 2008 – 11 million shares, nominal value £3 million, 0.4% of issued share 213
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Notes to the consolidated financial statements (continued) 28. Share capital and reserves (continued) capital (excluding treasury shares)). These shares have not been cancelled, but are deducted from shareholders’ equity. Dividends are waived on these shares.
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