Yahoo Invites Microsoft to Make a Proposal 'Immediately'

Includes: AABA, MSFT
by: Eric Savitz

Yahoo (YHOO) Monday declared that its board “continues to stand ready to enter into negotiations with Microsoft (NASDAQ:MSFT)” about a potential acquisition.

The declaration came in a statement Monday, in response to statements earlier Monday from Carl Icahn and Microsoft asserting that CEO Steve Ballmer would be willing to consider a new bid for the company if there was a change in the Yahoo board.

Here’s the Yahoo statement:

Yahoo!’s Board of Directors continues to stand ready to enter into negotiations with Microsoft Corporation for an acquisition of Yahoo!. Indeed, as recently as June, Yahoo!’s independent directors and management approached Steve Ballmer about just such a transaction, only to be told that Microsoft was no longer interested even in the price range which they had previously proposed. Now Mr. Ballmer and Mr. Icahn have teamed up in an apparent effort to force Yahoo! into selling to Microsoft its Search business at a price to be determined in a future “negotiation” between Mr. Icahn’s directors and Microsoft’s management. We feel very strongly that this would not lead to an outcome that would be in the best interests of Yahoo!’s stockholders. If Microsoft and Mr. Ballmer really want to purchase Yahoo!, we again invite them to make a proposal immediately. And if Mr. Icahn has an actual plan for Yahoo! beyond hoping that Microsoft might actually consummate a deal which they have repeatedly walked away from, we would be very interested in hearing it.

Yahoo Monday is up $2.52, or 11.8%, to $23.87.

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