The program for the repurchase of stocks worth $30 billion was mended by Qualcomm Inc., which said on Thursday that it initiated an accelerated scheme for a portion of $16 billion. The new agreements with Bank of America, Citibank and Morgan Stanley will include 178 million shares, while the final number would be based on the volume-weighted average price and a discount, the update revealed.
The operation will be funded by existing cash, the California-based chipmaker added. "We remain on track to complete a large majority of the announced program by the end of fiscal 2019. The board and the management team remain committed to returning capital to stockholders while we also continue to invest to create longer-term stockholder value," said chief executive Steve Mollenkopf.
The scheme was authorized in July following the failure of the attempt to take over NXP Semiconductors, which cost Qualcomm $2 billion, a termination fee. The company finished a buyback round worth $5.1 billion, or 5.2% of outstanding equity, late last month, in a so-called modified Dutch auction tender offer for up to $10 billion.
