A street sign is pictured in front of a factory with the logo of Siemens AG company in Berlin.

Frankfurt - German engineering giant Siemens said on Monday it is starting a share buyback programme costing up to 4.0 billion euros ($5.5 billion).

The share buyback was announced in November last year.

And until October 31, 2015, Siemens will repurchase up to 47.8 million shares, Siemens said in a statement.

“The buyback serves the sole purpose of cancelling and reducing the capital stock, issuing shares to employees, board members of affiliated companies and members of the Managing Board of Siemens AG as well as servicing convertible bonds and warrant bonds,” the statement said. - Sapa-AFP