IBM CEO backs up Red Hat deal with $3M buy of Big Blue stock

RESEARCH TRIANGLE PARK – IBM Chair and CEO Ginni Rometty is backing up her commitment to the $34 billion acquisition of Raleigh-based Red Hat with her own dollars.

Big Blue disclosed in a securities filing on Monday that Rometty had purchased $3 million in IBM shares. Some $1 million was invested in the open market and the remainder was purchased through a retirement fund, according to CNBC.

Other IBMers also bought shares. Wall Street investors responded to their confidence by driving up IBM shares more than 2 percent in early trading Monday. Just before 3 p.m. shares were up 4.3 percent, or $4.95, to$120.62+4.95.

Big Blue opens its arms, wallet, to Red Hat, but did deal cost too much at $34B?

IBM now owns more than 314,000 shares worth some $36 million, IBM noted.

Big Blue shares fell some 7 percent last week with some analysts and investors believing IBM had paid too much.

The tech giant agreed to pay Red Hat $190 per share with Red Hat remaining a separate unit and its CEO Jim Whitehurst reporting directly to Rometty as part of IBM’s senior management team.

IBM operates one of its largest campuses in Research Triangle Park and employs several thousand people across North Carolina.