Date: 02-13-2008
Yahoo! Inc. has rebuffed Microsoft's unsolicited ''full and fair proposal'' for a buyout, forcing the software company to either raise its bid or take a hostile approach to clinch the deal. Stating that Microsoft's bid ''substantially undervalues Yahoo!,'' the company's board ''concluded that the proposal is not in the best interests of Yahoo! and our stockholders.'' Microsoft subsequently reiterated the proposal without showing any signs of raising the bid, saying it offers ''superior value'' to Yahoo! shareholders. According to some observers, Microsoft could switch from wooing Yahoo!'s leaders to taking the deal to the shareholders directly. On the other hand, Yahoo! may turn to its Silicon Valley neighbor Google to save itself from Microsoft's clutches or deal with AOL Time Warner, which might prove less advantageous.
