Motorola this week said it plans to buy back approximately $4 billion in stock, representing 10 percent of the company's total market capitalization. News of the stock buy-back drove shares of the company higher in trading. Motorola CEO Ed Zander said the company's stock acquisition is designed to help improve value for its shareholders. Zander said the buyback is the first in the company's history. As of April 2, Motorola held cash, cash equivalents, and short-term investments of approximately $11.3 billion.
Thanks to the company's recent financial turnaround, Motorola has been at the center of a number of recent merger rumors. Insiders have speculated that the company might make a deal to acquire Lucent Technologies or Nortel Networks. The company for a while was reportedly to be in talks to buy Siemens' ailing handset business, but Motorola has since denied the Siemens-related rumors.
For more on Motorola's stock buyback:
- check out this story from today's Chicago Tribune