A company has a cash surplus which it wishes to distribute to shareholders by a share repurchase...

The payment of a special dividend could raise shareholders' expectations of similar distributions in the future, unlike a share repurchase.

The share repurchase could send a negative signal to shareholders as it could be interpreted as a failure of management to find suitable investment opportunities.

Determination of the repurchase price will be easy as shareholders will insist on receiving the open market price.

Different tax regimes could result in shareholders having a preference for a share repurchase due to the often more preferential tax treatment of capital gains.

The share repurchase, if approved by the shareholders, will be binding on all of the company's shareholders.