Illinois Tool Works Inc. was pressured by investor Ralph Whitworth to increase its profit rhrough a share buyback plan. The said plan was pegged at USD6 billion in shares. The share buyback plan strengthened the company allowing for a dividend to be issued to its shareholders.

The repurchase program allowed Illinois Tool Works Inc. to buy back common stock given an open ended timeframe. This was according to a statement issued today by the company. The existing repurchase plan already got USD4 billion announced May 2011. As of June 30 this year, the plan had about USD1.2 billion remaining shares to buy back.

Relational Investors LLC run by Whitworth took a stake in Illinois Tool last year. The fund urged the company's management to cut costs and decrease the number of its business units. This year, JPMorgan Chase & Co. along with Goldman Sachs Group Inc. were hired as advisors to a possible sale of its industrial packaging division.