Updated from 9:49 a.m.
just can't buy back enough stock.
The Redmond, Wash., software giant added $16.2 billion to its existing buyback plan Friday after a $20 billion Dutch auction self-tender fell way short of targets.
The news comes as Microsoft said it expects to repurchase 155 million shares at $24.75 each in a previously disclosed Dutch auction self-tender. That plan will cost $3.8 billion. Microsoft said last month it would buy back as many as 808 million shares in a $20 billion buyback plan.
said last month it would also start on buyback of up to $20 billion to be completed by 2011.
But with the Dutch auction having come up $16.2 billion short, Microsoft is simply adding those shares to its five-year plan. The company now is due to repurchase some $36 billion worth of stock by June 30, 2011.
Microsoft said last month that its earlier buyback plan covering $30 billion in stock has been completed.
Shares rose 46 cents early Friday to $25.16.