Microsoft plans $40bn investor windfall
Technology giant Microsoft has unveiled plans to return up to $40 billion (£25.1bn) to investors through a new share buy-back programme after hiking its dividend by 22 per cent.
The group, which earlier this month sealed a €5.44bn (£4.6bn) deal to buy Nokia’s struggling mobile phone handset business, will pay a 28 cent dividend, worth a total of about $400 million, in December.
Its share-buy back scheme, which will run for an indefinite period, replaces a $40bn programme that was due to expire at the end of the month.
Microsoft revealed the plans ahead of tomorrow’s meeting with financial analysts. Chief executive Steve Ballmer is due to retire next year and Nokia boss Stephen Elop, who was previously head of the US group’s business division, has been tipped as a front-runner in the race to replace him.