Yahoo may reject Microsoft Offer

The Internet major Yahoo is likely to turn down the Microsoft Corp’s 44.6 billion takeover offer.The media is reporting this quoting an unnamed source.

The "San Francisco Chronicle" said the decision will be formally delivered to Microsoft in a letter to Microsoft on Monday. Yahoo’s 10-member boar4d ,which met on Friday to discuss the week old proposal,determined that the 31$ per-share was too low,source told the San Francisco Chronicle on condition of anonymity.

Microsoft has held out the possibility that it could undertake a hostile merger attempt if Yahoo’s Board members rejected the offer,the Daily has reported.But it might require Microsoft to unseat some of Yahoo’s board members,the report noted.

The Yahoo board is expected to meet this week also so we can expect more progressions in the issue.

Meanwhile the Wall Street Journal has said that Yahoo is unlikely to go for a hostile bid.

"Yahoo’s board appears to be betting that Microsoft doesn’t want to go hostile and try to acquire the company against the wishes of management and the board.such a course could cause deep resentment among the rank-and-file engineers whose Microsoft is crucial to it’s success" Pointed out the Wall street Journal.

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Tags: Microsoft, Yahoo