Microsoft's Proxy Bid for Yahoo is a Bluff [View article]
No, I think this logic is flawed. No one is selling now because of the possibility of a higher deal, but if the proxy bid fails the stock will drop like a rock. Not only will Yahoo be sued but also those large institutional investors themselves.
It's simple. They can currently hold on and MAYBE get more. If MS is not bluffing about the proxy battle, worst case they vote pro-MS and get the $29/share. If they sell now, yes they get the same amount, but they lose the possibility of the few bucks a share MS might throw at Yang to save him face.
In other words, sell now: definitely $29/share. Hold and vote MS: definitely $29/share and maybe more. Why wouldn't you choose the latter?
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No, I think this logic is flawed. No one is selling now because of the possibility of a higher deal, but if the proxy bid fails the stock will drop like a rock. Not only will Yahoo be sued but also those large institutional investors themselves.
Feb 21 10:59 am
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All Comments by oceandude »Microsoft's Proxy Bid for Yahoo is a Bluff [View article]
It's simple. They can currently hold on and MAYBE get more. If MS is not bluffing about the proxy battle, worst case they vote pro-MS and get the $29/share. If they sell now, yes they get the same amount, but they lose the possibility of the few bucks a share MS might throw at Yang to save him face.
In other words, sell now: definitely $29/share. Hold and vote MS: definitely $29/share and maybe more. Why wouldn't you choose the latter?