Yahoo to Reject Microsoft Bid: Reports

[gkd_uk]

In a bid to remain independent, Yahoo plans to reject Microsoft Corp.’s unsolicited takeover offer, according to reports on the Wall Street Journal’s web site.

Quoting sources familiar with the situation, the Journal reports that Yahoo’s board feels the offer of $31 per share “massively undervalues” the company. A letter spelling out the position is expected to be sent Monday. Yahoo also expressed concern that Microsoft’s offer does not account for risks to Yahoo should the deal be overturned by regulators.

The Journal source said the company would be unwilling to consider an offer below $40 per share, which would represent a $12 billion increase over Microsoft’s original $44.6 billion bid. It is unclear if Microsoft would be willing to increase its bid by such a significant amount.

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[SkinnerW]

Just watch share price of Yahoo go down like a rock on Monday...

[temi]

Some argue that its a ploy to get MS to raise the bid price.

[wyzemoro]

yahoo creditors wants their investment return more big. if it satisfy prolly the $40+/share.

[fpforum]

I would expect to see MS make another bid later..I knew I should have bought in when it was $18/share

[lajocar]

It is a good strategic move from Yahoo