By Rex Crum
Tech stocks were active Monday, with Hewlett-Packard Co.
announcing a $10 billion stock buyback and holding the edge in the
battle for 3Par Inc., while Intel Corp. slipped after unveiling its
latest deal.
Before the market opened, H-P (HPQ) said it has approved a plan
to buy back $10 billion of its company stock. The company still has
$4.9 billion in repurchase authorizations remaining under an $8
billion buyback plan the H-P board approved in 2009.
H-P also appeared to have the inside track in the fight with
Dell Inc. (DELL) to acquire 3Par (PAR). Over the weekend, 3Par said
it intended to accept H-P's $30-a-share offer, which values the
data-storage company at about $2 billion. Dell, which originally
reached a deal to acquire 3Par for $18 a share before H-P started a
bidding war for the company, has yet to respond to H-P's latest
offer, or 3Par's plans.
H-P shares rose $11.28, or 3.4%, to $39.27, while Dell was up 19
cents a share at $12.08. 3Par shares shed 68 cents to trade at
$31.80.
Intel (INTC) opened up its checkbook again, agreeing to pay $1.4
billion for the wireless-chip business of German semiconductor
company Infineon Technologies AG (IFNNY). The Infineon business
makes chips used in mobile phones and laptop PCs.
It's the second major acquisition for Intel in two weeks.
Earlier this month, Intel agreed to acquire security software
company McAfee Inc. (MFE) for $7.7 billion.
Intel shares were down 36 cents, or almost 2%, at $18.01
Cogent Inc. (COGT) shares climbed $1.76, or almost 20%, to
$10.67 after 3M Co. (MMM) said it would acquire the
biometric-technology company for $943 million. 3M plans on using
Cogent's technology to expand its business with law-enforcement and
border-security agencies.
The recent wave of tech acquisitions has led to much speculation
over what areas and companies appear to be attractive targets for
some of the tech leaders with huge cash reserves.
Gains also came from Apple Inc. (AAPL), Oracle Corp. (ORCL), EMC
Corp. (EMC), IBM Corp. (IBM) and Research In Motion Ltd.
(RIMM).
The Nasdaq Composite Index (RIXF) edged up about 1 point to
2,154. The Philadelphia Semiconductor Index (SOX) dipped into the
red.