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Sun Micro Sets $3 Billion Buyback

The company looks to fight equity compensation dilution.

Sun Microsystems' (SUNW) - Get Sunworks, Inc. Report board authorized the repurchase of up to $3 billion of the company's outstanding shares.

The tech hardware maker said the move was designed to "increase shareholder value and reduce the dilutive effect of Sun's equity compensation programs." It replaces a prior repurchase program authorized in February 2001, which has been terminated.

The board's authorization doesn't have an expiration date, but Sun may repurchase shares from time to time on the open market or in private transactions, including structured transactions.

Shares of Sun were recently up 20 cents, or 3.9%, in after-hours trading to $5.32.

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