Microsoft to buyback US$ 40 bn shares

Updated on Sep 22, 2008 09:15 PM IST

Software giant Microsoft Corporation today said it will buy back shares worth 40 billion dollars, a move that would increase promoter holding in the company.

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PTI | By, New York

Software giant Microsoft Corporation on Monday said it will buy back shares worth 40 billion dollars, a move that would increase promoter holding in the company.

Further, the board of directors of Microsoft has declared a quarterly dividend of USD 0.13 per share, a two cent or 18 per cent increase over the previous quarters dividend.

The board has approved the USD 40 billion share repurchase programme which would continue till September 30, 2013, the company statement said.

"These announcements illustrate our confidence in the long-term growth of the company and our commitment to returning capital to our shareholders," Microsoft Chief Financial Officer Chris Liddell said.

Besides, the company has also completed its previous USD 40 billion stock repurchase programme.

"Microsoft has returned over USD 115 billion to shareholders through a combination of share repurchases and dividends over the last five years," the statement added.

The board has also authorised debt financings of up to USD 6 billion pursuant to which the company has established a USD 2 billion commercial paper programme.

The company intends to use the net proceeds from debt financings for general corporate purposes, which may include funding for working capital and repurchases of stock, it added.

Shares of Microsoft Corp were trading at 26.18 dollars, up 4 per cent on the NASDAQ in the morning trade.

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