Network Associates Inc [NET] plans to spend $150 million to buy back its own shares after CEO George Samenuk claimed they were undervalued at today’s prices.
He said that the company’s new portfolio of security applications would enable it to capitalize on increasing market opportunities.
The company’s stock, which has been as high as $20.33 in the past year, rose 1.2% to $13.34 on the news. The move will only make a modest dent in the company’s cash and equivalents that stood at $783 million at the end of September, and if the stock is bought at the current price, will reduce the outstanding equity by 7%.
A cloud has been hanging over the California-based company in the form of a huge restatement dating back to 1998, and the SEC and the Department of Justice are still probing the company.
This article was based on material originally published by ComputerWire.