Qualcomm Trades Higher After Tender Offer

QUALCOMM, Inc. QCOM announced Tuesday it has completed a portion of its accelerated share buyback plan.  

What Happened

Qualcomm said it will buy back 76.2 million shares in a $5.1-billion tender offer.

The tender offer equates to $67.50 per share. The initial stage of the plan authorized up to $10 billion in share buybacks.

Why It's Important

A tender offer is an offer to purchase some or all of shareholders’ shares in a corporation, generally at a premium to the current market price, according to Investopedia. The SEC requires any corporation or individual acquiring at least 5 percent of a company to disclose the stake.

What’s Next

Qualcomm announced the buyback plan last month, after it said it was abandoning a $44-billion takeover of NXP Semiconductors NV NXPI to instead invest in its own business.

The company has authorized up to $30 billion in share buybacks that are expected to wrap by September 2019.

Price Action

Qualcomm shares were up 3.62 percent at $69.78 at the close Tuesday.

Related Links:

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Photo courtesy of Qualcomm.