UPDATE 2-Microsoft revamps search engine, dubbed 'Bing'

* Relaunched search engine takes aim at Google

* Service to be introduced over next few days

* Full launch next Wednesday

* Microsoft, Google, Yahoo shares all rise slightly (Adds Microsoft CEO comment, share prices, Bing details)

By Bill Rigby

SEATTLE, May 28 (Reuters) - Microsoft Corp (MSFT.O: Quote, Profile, Research) is revamping its search engine to counter the dominance of Google Inc (GOOG.O: Quote, Profile, Research) in the Web search and related advertising business.

The world's largest software company, which is still in talks with Yahoo Inc (YHOO.O: Quote, Profile, Research) over a potential partnership, has long been determined to play a major role in the lucrative Web search market after watching upstart Google take a stranglehold.

Microsoft, which has been testing the search engine internally under the name Kumo for several months, plans to introduce the new service, re-christened "Bing," over the next few days, with a full launch next Wednesday. The service will be available at www.bing.com.

Advertising Age reported earlier this week that Microsoft was planing a $80 million to $100 million ad campaign to promote Bing. Microsoft declined to comment on the report.