July 23 (Bloomberg) -- Bank of America Corp., the biggest U.S. consumer bank, approved the purchase of up to 75 million shares of common stock for as much as $3.75 billion.

Bank of America's board authorized management to repurchase shares over the next 12 to 18 months, according to a statement today from the Charlotte, North Carolina-based company. The plan replaces a January 2007 program involving up to 200 million shares and authority to spend as much as $14 billion.

Bank of America has soared more than 75 percent in the past six sessions on the New York Stock Exchange, after reaching an eight-year low on July 15. The bank's second-quarter profit of $3.41 billion topped analysts' estimates and the board didn't cut its dividend as some investors had expected.

The bank repurchased 73.7 million shares last year at an average price of $51.42 per share, reducing shareholders equity by $3.8 billion, the company said in a July 15 regulatory filing. No buybacks have occurred this year, filings show.

The bank gained $1.09, or 3.4 percent, to $33.44 at 4:01 p.m., leaving the shares down 19 percent this year.

To contact the reporter on this story: David Mildenberg in Charlotte at dmildenberg@bloomberg.net

Last Updated: July 23, 2008 16:20 EDT