Troubled information technology software company CBT has announced it will repurchase up to $25 million (€23.2 million) of its own shares. The company will be hoping the share buy-back will provide some long-term support for CBT's ailing share price. The shares traded marginally higher following the announcement and closed up xxx at xxx yesterday.

The transaction is subject to the company securing a listing for its shares on the Irish Stock Exchange and shareholder approval.

In a statement, CBT said the board of directors had sanctioned the purchase because of its belief that the shares were substantially undervalued at current levels. "Based on the current price of our shares, we believe a substantial investment in CBT Group out of our cash reserves is in the best interest of our company and its shareholders," said CBT chairman, Mr Bill McCabe.

The total number of shares purchased and the price to be paid will depend on the availability of the shares, the prevailing market price and any other considerations which, in the opinion of the directors, could affect the purchase.

The transaction will be funded from CBT's cash and internally generated funds it said.

CBT has endured a traumatic period which began shortly after the departure of its founder, Mr McCabe in 1996. Shares have remained highly volatile despite his return, falling to lows of $6.72 at one stage as CBT's results fell below analysts' expectations. A number of shareholders are taking class actions against some of the CBT former and existing directors to try and recoup some of the monies they lost when the shares tumbled from over $60 to $6 in just three weeks.