The technology giant HP says the move to buy back US$10bn in shares will help it to manage the dilution caused by employee stock plans and repurchase shares opportunistically.
“HP has a strong balance sheet,” said Cathie Lesjak, HP chief financial officer and interim chief executive officer who took over from former CEO Mark Hurd.
“We plan to be active in repurchasing our shares, and we expect to repurchase at least US$3bn worth of our shares in our fiscal fourth quarter at current price levels.
“This increased authorisation will ensure that we have sufficient capacity to continue to be active in repurchasing our shares prior to our fiscal fourth quarter earnings announcement in November.”
HP repurchased about US$2.6bn worth of its shares in its fiscal third quarter and, as of 31 July, had about US$4.9bn of repurchase authorisation remaining under the US$8bn repurchase authorisation approved by the board in November 2009.