(Bloomberg) -- Qualcomm Inc. unveiled a new plan to buy back $10 billion in stock, replacing an earlier repurchase program that was almost exhausted.
The San Diego-based company, the world's largest maker of mobile-phone chips, said the plan authorized by the board has no expiration date. The previous buyback was a $15 billion program that had $1.2 billion remaining, Qualcomm said Wednesday in a statement.
Qualcomm is trying to complete its more than $40 billion purchase of Dutch chipmaker NXP Semiconductors NV before a July 25 deadline imposed by the target company. That deal, which has been held up by Chinese regulators, is part of Qualcomm's plan to revive sales growth and expand in new markets, such as automotive systems and the internet of things.
In the statement, Chief Executive Officer Steve Mollenkopf reiterated that the company is still executing on the proposed acquisition, which has been pending for more than 18 months. Qualcomm has said that if the transaction falls through, it would use cash reserves for a large share repurchase to return value to shareholders.
Qualcomm shares rose 2.5 percent in extended trading following the buyback announcement. They've fallen 17 percent this year. The company itself had been the target of a hostile takeover bid by rival Broadcom Inc. until that deal was scuttled by the U.S. government, which blocked the potential transaction on national-security grounds.
To contact the reporter on this story: Jillian Ward in San Francisco at jward56@bloomberg.net.
To contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net, Jillian Ward, Andrew Pollack
©2018 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
