Share buyback after patent breach
Source: Bloomberg News |
July 18, 2011, Monday
|
Print Edition
Print Edition
HTC Corp, Asia's second-biggest maker of smartphones, plans to buy back as much as 2.4 percent of its outstanding shares after a United States International Trade Commission ruled that it infringed two Apple Inc patents.
The company, based in Taoyuan, northern Taiwan, will purchase as many as 20 million of its own shares by September 17, according to filings to the Taiwan stock exchange on Saturday. Half of the repurchased shares will be transferred to employees, and the remainder canceled.
HTC shares tumbled 6.5 percent last week to NT$907 (US$31.39) in Taipei amid concern the patent dispute with Apple will affect earnings by crimping sales in the US or boosting costs.
"The stock repurchase plan may stop the stock from falling Monday," said Parker Wu, a fund manager overseeing NT$4 billion for Taipei-based Agriculture Bank of Taiwan, who doesn't own the stock. "Longer term, it'll depend on how the lawsuit goes and the attitude of foreign investors, as they control more than half of HTC's shares."
HTC said on Saturday it'll appeal a ruling by a US judge that the firm infringed two Apple patents. The judge's finding last Friday is subject to review by the full six-member ITC in Washington.
Should the ITC uphold the finding, the US may ban imports of HTC phones that run on Google Inc's Android.
The company, based in Taoyuan, northern Taiwan, will purchase as many as 20 million of its own shares by September 17, according to filings to the Taiwan stock exchange on Saturday. Half of the repurchased shares will be transferred to employees, and the remainder canceled.
HTC shares tumbled 6.5 percent last week to NT$907 (US$31.39) in Taipei amid concern the patent dispute with Apple will affect earnings by crimping sales in the US or boosting costs.
"The stock repurchase plan may stop the stock from falling Monday," said Parker Wu, a fund manager overseeing NT$4 billion for Taipei-based Agriculture Bank of Taiwan, who doesn't own the stock. "Longer term, it'll depend on how the lawsuit goes and the attitude of foreign investors, as they control more than half of HTC's shares."
HTC said on Saturday it'll appeal a ruling by a US judge that the firm infringed two Apple patents. The judge's finding last Friday is subject to review by the full six-member ITC in Washington.
Should the ITC uphold the finding, the US may ban imports of HTC phones that run on Google Inc's Android.
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