Dell Vows to Fight Decline With $10B Stock Buyback
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Dell said on Tuesday its board authorized a $10 billion stock buyback and its repurchase program would resume this week, sending shares of the computer maker up 2 percent.
The authorized repurchase represents about 18 percent of Dell's market capitalization of about $55 billion.
"Dell is committed to a long-term share repurchase program as part of an overall capital allocation plan that supports growth and also returns value to shareholders," Dell Chairman and CEO Michael Dell said in a statement at an annual shareholders meeting in Texas on Tuesday.
The stock fell as much as 15 percent last week after Dell reported lower-than-expected third-quarter profit margins and warned that rising costs could depress future earnings.
The Round Rock, Texas-based company is facing greater competition from Asian rivals including Acer and Lenovo Group, as well as market leader Hewlett-Packard.
In June, Dell began to sell PCs in retail stores for the first time after 23 years of direct-only sales via the telephone or Internet.