Alibaba.com soars 21 pct after plan of share buyback

HONG KONG, Nov 12  - Shares of top Chinese e-commerce firm Alibaba.com Ltd rose 21.25 percent on Wednesday after the company said its board of directors had approved a plan to buy up to HK$2 billion (US$258 million) worth of shares.

Shares of Alibaba.com rose as high as HK$5.90 with 18.9 million shares changing hands.

Alibaba.com <1688.HK>, which posted a slower growth in third quarter earnings, said on Tuesday its board of directors had approved a plan to repurchase HK$2 billion worth of shares on-market through the end of 2009, a move to be funded by existing available cash reserves and free cash flow.

The firm -- in which U.S. Internet company Yahoo <YHOO.O> is a key investor -- has ample cash and wants to buy back its shares which have lost more than three-fifths of their value since they were listed last November. (US$1=HK$7.8) (Reporting by Donny Kwok)