HP approves stock buyback

Hewlett-Packard (HP) said today its board approved to buy back an additional $10 billion in shares to manage dilution created…

Hewlett-Packard (HP) said today its board approved to buy back an additional $10 billion in shares to manage dilution created by shares issued under other plans.

HP interim CEO Cathie Lesjak said in a statement the firm plans to repurchase at least $3 billion worth of shares in the fiscal fourth quarter.

As of the end of July, HP had repurchased about $2.6 billion of its shares in its fiscal third quarter as part of an $8 billion repurchase plan approved in November 2009. Under that authorization, HP has approximately $4.9 billion remaining to buy back its stock.

Shares of HP rose 2.7 per cent to $39.01 in premarket trade after the announcement.

Reuters