HTC buys back shares to "maintain its credibility"

Taiwanese smartphone firm HTC – chairwoman Cher Wang – is to spend $1.8 billion to buy back shares because it wants to maintain the company’s credibility.

The company issued a statement on the Taiex bourse after its shares slumped by 19 percent since the beginning of 2010, according to the Taipei Times.

HTC specialises in making phones that use the Android OS or Microsoft Windows Mobile OSes.

Cher Wang, who is also the chairwoman of X86 chip manufacturer Via and married to its CEO, Wen Chi Chen, is one of the richest people in the world, according to Forbes. She is a daughter of YC Wang. He died a while ago but headed up Formosa Plastics.

According to the Taipei Times, between December 2006 and October 2009, HTC has bought back 20.71 million shares on the open market.

The newspaper, quoting Chinese language paper the Economic Daily News, also said that HTC was going to slash prices by 40 percent on phones sold in China, Singapore, and Taiwan. HTC has denied that.

The Taipei Times is here.