Red Hat Hatches Buyback

Shares rise.
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Red Hat (RHAT) bounced into the green Friday after the hard-hit open source software company rolled out a $250 million buyback plan.

The news comes a day after the Raleigh, N.C., business software servicer lost a quarter of its market value on news that giant

Oracle

(ORCL) - Get Report

planned a

competing product.

"We believe this repurchase program is in the best interest of our shareholders," said finance chief Charles Peters. "It underscores our belief in Red Hat's future and represents an opportunity to enhance long-term shareholder value."

Red Hat also plans to retire $75 million of its 0.5% convertible senior debentures due 2024.

The moves will be funded from working capital. At Aug. 31, Red Hat had cash and investments in debt securities of $1 billion.

Shares rose $1.29 to $16.12.