HP board approves $10 bn for share buyback

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 $1.10, or 2.9 per cent, to $39.10 in New York Stock Exchange composite trading at 10.19 am The shares had fallen 26 per cent this year before today.

The company is searching for a new CEO following the August 6 departure of Mark Hurd. The former CEO stepped down after an inquiry into sexual harassment claims 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.