HP Board Authorizes $10 Billion for Share Buybacks
HP Interim CEO Cathie Lesjak
Bite Communications via Bloomberg
HP Chief Financial Officer and interim CEO Cathie Lesjak.
HP Chief Financial Officer and interim CEO Cathie Lesjak. Source: Bite Communications via Bloomberg
Aug. 30 (Bloomberg) -- Paul Meeks, an equity analyst at Capstone Investments Inc., talks about the bidding war between Hewlett Packard Co. and Dell Inc. for data-storage provider 3Par Inc. Meeks, speaking with Bloomberg's Peter Cook on Bloomberg Television's "InsideTrack," also discusses Hewlett-Packard's management. (Source: Bloomberg)
HP Board Authorizes $10 Billion for Share Buybacks
Tony Avelar/Bloomberg
HP last week topped Dell Inc. in the bidding for 3Par for a third time.
HP last week topped Dell Inc. in the bidding for 3Par for a third time. Photographer: Tony Avelar/Bloomberg
(Corrects story published Aug. 30 to make sexual harassment claim singular in fifth paragraph.)
Hewlett-Packard Co., the personal- computer maker in a $2 billion bidding war for data-storage provider 3Par Inc., said its board approved an additional $10 billion for share repurchases.
The move, which adds to the $4.9 billion already available, will help offset dilution from employee stock purchases, the Palo Alto, California-based company said today in a statement. HP will repurchase at least $3 billion in shares in the fiscal fourth quarter ending in October, Cathie Lesjak, interim chief executive officer, said in the statement.
HP last week topped Dell Inc. in the bidding for 3Par for a third time. HP offered the largest premium in a competitive situation since 2001, according to Bloomberg data. HP, the world’s largest PC maker, bought back about $2.6 billion last quarter, the company said. In November, HP set aside $8 billion for buybacks.
HP climbed 56 cents, or 1.5 percent, to $38.56 at 4 p.m. in New York Stock Exchange composite trading. The shares have fallen 25 percent this year.
The company is searching for a new CEO following the Aug. 6 departure of Mark Hurd. The former CEO stepped down after an inquiry into a sexual harassment claim found he filed inaccurate expense reports to conceal a personal relationship with a marketing contractor.
HP hired executive search firm Spencer Stuart Inc. to find Hurd’s replacement.
To contact the reporter on this story: Katie Hoffmann in New York at khoffmann4@bloomberg.net.
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