Published at LXer:

Microsoft Corp., for the first time in the company's history, sold bonds to investors, capitalizing on its sterling credit rating and investor appetite to raise $3.75 billion. The software giant Monday was able to sell bonds at interest rates that were only a slight premium to U.S. government debt and at much lower rates than other corporations. The move sparked speculation that the Redmond, Wash., giant could be planning to use the money for an acquisition as it seeks to revive growth. But people familiar with the matter said the company doesn't have a specific deal in mind for the cash, moving instead to take advantage of market conditions. Analysts predicted Microsoft is more likely to use the funds to continue to buy back its stock, which has fallen more than 30% over the past year.

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