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  1.    #1  
    Hi all,

    FYI.

    Take care,

    Jay

    HP moves to allay shareholders with $10 billion repurchase plan
    By Larry Dignan | August 30, 2010, 6:56am PDT

    HP moves to allay shareholders with $10 billion repurchase plan | ZDNet

    With a $2 billion offer on the table to acquire 3Par, Hewlett-Packard on Monday moved to allay shareholder concerns with a hefty stock buyback plan.

    HPs repurchase program comes a few days after it raised its offer for 3Par to $30 a share, shortly after Dell matched a previous offer. Dell hasnt yet responded, but has three business days to do so. 3Par late Friday declared HPs bid superior and indicated that it would terminate its merger agreement with Dell without a matching bid.

    To beat Dell and prevent it from getting storage traction in data centers, HP appears willing and able to pay 10x revenue for 3Par. Given the bidding war and the departure of CEO Mark Hurd, HP had to allay concerns. Enter the $10 billion buyback.

    HP CFO and interim CEO Cathie Lesjak said that the company will be active in repurchasing our shares, and we expect to repurchase at least $3 billion worth of our shares in our fiscal fourth quarter at current price levels.

    The message for both shareholders and potentially Dell is that HP has a strong balance sheet. Indeed, HP had cash from operations of $3.3 billion for its July quarter with free cash flow of $2.1 billion.
    Please Support Research into Fibromyalgia, Chronic Pain and Spinal Injuries. If You Suffer from These, Consider Joining or Better Yet Forming a Support Group. No One Should Suffer from the Burden of Chronic Pain, Jay M. S. Founder, Leesburg Fibromyalgia/Resources Group
  2. #2  
    What they need to do is have a repurchase plan for phones as part of launching their next device...
  3. #3  
    Wouldn't that be sweet.....that would be some good customer appreciation.
  4. #4  
    maybe instead of having CEOs that grow their company by firing its workers, that fudge their expense accounts while being a tyrant to their underlings; a company that needs to pay fines for its corrupt practices, that buys an endless string of companies -- maybe what HP really needs to do is buy a clue ...
    755P Sprint SERO (upgraded from unlocked GSM 650 on T-Mobile)
  5. #5  
    in any event this will likely establish a floor for HP's stock price -- it may well go up a few points in coming days.

    Too bad, as I had wanted to buy some at $35. I wonder what Larry Ellison thinks of all this ...
    755P Sprint SERO (upgraded from unlocked GSM 650 on T-Mobile)
  6. #6  
    Quote Originally Posted by BARYE View Post
    maybe instead of having CEOs that grow their company by firing its workers, that fudge their expense accounts while being a tyrant to their underlings; a company that needs to pay fines for its corrupt practices, that buys an endless string of companies -- maybe what HP really needs to do is buy a clue ...
    buy a clue? Laying off employees is an unfortunate, yet neccisary part of running a successful business. You might not be in favor of his 'tyrannical' practices, but his responsibility was too his shareholders (who didn't take issue) , not you. And the gains he made for the company far outweigh any expense reporting error. Perhaps HP isn't the one who should be investing in a clue..

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