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Broadcom announces US$12bln stock buyback, shares rise

The company's bid to take over Qualcomm was blocked in March
Broadcom logo on a chip
Shares of the company rose over 3% on Friday morning

Broadcom Inc. (NASDAQ:AVGO) announced on Thursday that it would offer a buyback of its stock totaling US$12bln.

Shares of the chipmaker rose more than 3% to US$246.74 Friday morning. Shares were up as high as 4% after the announcement Thursday.

The company had been trying to take over Qualcomm, another semiconductor technology company, but President Trump blocked the US$117bln bid in March citing national security concerns.

“The initiation of a stock repurchase program enhances our capital allocation strategy and provides us with a complementary tool to deliver value to our shareholders,” said Tom Krause, Broadcom’s Chief Financial Officer. 

The repurchase authorization is effective immediately and available until November 3, 2019.

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