Qualcomm Incorporated (NASDAQ:QCOM) shares surge following the announcement of a multi-billion share buyback.
The chipmaker plans to repurchase up to US$10bn of its shares in what’s known as a “modified Dutch auction,” or a process that allows shareholders to decide the number of shares they sell and the price at which they will sell them.
The shares will be sold for no less than US$60 and no more than US$67.50 per share, as per the company’s press release.
READ: Qualcomm posts 2Q earnings beat but forecasts lackluster 3Q results
The company referred to the offer as the “first step” in its plan to repurchase as much as US$30bn in stock this fiscal year.
The repurchase may be able to encourage shareholders following an unsuccessful merger with fellow chipmaker NXP Semiconductors NV (NASDAQ:NXPI).
Qualcomm put in a US$44bn bid for the company but regulatory obstacles led to the bid being cancelled last week.
Shares of the California-based company were up more than 3% to US$63.97 in Tuesday trading.