"They tried to make me go to Redmond, I said, No! No! No!"
The WSJ is reporting that the Yahoo (YHOO) Board of Directors plans to reject Microsoft's (MSFT) unsolicited $44.6 billion offer:
"After a series of meetings over the past week, Yahoo's board determined that the $31 per share offer "massively undervalues" Yahoo, the person said. It also doesn't account for the risks Yahoo would be taking by entering into an agreement that might be overturned by regulators. The board plans to send a letter to Microsoft Monday, spelling out its position.
Yahoo's board believes that Microsoft is trying to take advantage of the recent weakness in the company's share price to "steal" the company. The decision to reject the offer signals that Yahoo's board is digging in its heels for what could be a long takeover battle. The company is unlikely to consider any offer below $40 per share, the person said...
Yahoo has taken "poison pill" provisions to prevent an unwanted takeover. Microsoft would likely have to oust the board in order to overturn them."
An anonymous friend from college points out an interesting aside:
There has been lots of buzz about the battle royale between Microsoft, Google (GOOG) and Yahoo. For all the jockeying, it's an interesting coincidence that all 3 are back to where they started from 12 months ago.
To a buy & hold investors, nobody in this group impressed much:
I actually have a fascinating piece of intel about the Yahoo! deal, but I cannot release it til Monday. See this space then for a shocker.
Source:
Yahoo Board to Reject Microsoft Bid
MATTHEW KARNITSCHNIG
WSJ, February 9, 2008 5:20 p.m.
http://online.wsj.com/article/SB120257515426256541.html
