Microsoft buyback plan boosts shares

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Microsoft buyback plan boosts shares

Post by Andrew »

Microsoft buyback plan boosts shares

Since July 20, when Microsoft announced plans to buy back $20 billion worth of its stock through a modified "Dutch auction" that ends today, shares climbed 7.5 percent.

The stock gained 8 cents Wednesday to hit $24.70, a nickel below the upper end of the price range Microsoft said it would pay to repurchase its shares.

At $24.75, Microsoft could buy more than 808 million shares, reducing its float by about 8 percent and adding about 5 or 6 cents per share to forecast fiscal 2007 earnings.

Until 11:59 p.m. Eastern Time tonight, shareholders may offer to sell at a price they're willing to accept in the range Microsoft specified — $22.50 and $24.75 per share. Then the company will review the offers and select the lowest purchase price that will allow it to buy 808 million shares.

Image Source: SeattleTimes