Microsoft Plans to Buy Back $40 Billion in Shares

By THE ASSOCIATED PRESS
Published: September 22, 2008

REDMOND, Wash. — The software giant Microsoft said Monday that its board had approved a plan to buy back up to another $40 billion of its shares.
The program expires on Sept. 30, 2013, Microsoft said.

The company said it had completed its previous $40 billion stock repurchase program.
Microsoft also raised its quarterly dividend to 13 cents, from 11 cents. The dividend is payable Dec. 11 to shareholders of record on Nov. 20.

The company’s board has also authorized debt financings of up to $6 billion. As part of this authorization, Microsoft has established a $2 billion commercial paper program. The company plans to use the proceeds for general corporate purposes, including buybacks and financing for working capital.

Hewlett-Packard said on Sunday that its board also had authorized an additional $8 billion in share repurchases.
H.P. intends to use the additional authorization as part of its program to manage the dilution created by shares issued under employee stock plans and to repurchase shares opportunistically.