Yahoo rejects Microsoft offer

[praka123]

sad news of M$haft boys

It's officially official: the board of Yahoo has FORMALLY rejected Micro$oft'$ offer

Yahoo! Rebuffs Microsoft's $44.6 Bln Bid - Quick Facts [YHOO]

2/11/2008 9:05:00 AM Yahoo! Inc. (YHOO) said its Board has unanimously concluded that the Microsoft's $44.6 billion takeover proposal is not in the best interests of the company and its stockholders.

Yahoo! said, after careful evaluation, it believes that Microsoft's proposal substantially undervalues the company, including its global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects.
*www.rttnews.com/sp/Quickfactsnew.asp?date=02/11/2008&item=105

ah!saved my email going merged to window$ cr@p mail!yahoo rock on!

 

[MetalheadGautham]

Bravo Yahoo you won my heart back ! Congratulations for rejecting the deal.
*gigasmilies.googlepages.com/36.gif *gigasmilies.googlepages.com/67.gif *gigasmilies.googlepages.com/69.gif *gigasmilies.googlepages.com/77.gif *gigasmilies.googlepages.com/100.gif *gigasmilies.googlepages.com/111.gif

 

[praka123]

^NO!the threat is not over yet.M$ now is "officially" hostile to yahoo.now they will do ugly play(as with their history) that includes buying out yahoo shares as much as possible so as to control yahoo.acquisitions of yahoo's parts is another thing!
devil is devil.devil is M$haft(and its supporting boys!)

 

[iMav]

dude iv told u this before please never start or partner a business coz u have no idea how business is done

 

[Zeeshan Quireshi]

dude iv told u this before please never start or partner a business coz u have no idea how business is done

Ya he might not have problem with Lakshmi Mittal buying out Arcelor by a Hostile Bid .

 

[iMav]

Ya he might not have problem with Lakshmi Mittal buying out Arcelor by a Hostile Bid .

its not abt having a problem its about knowing how takeovers happen

his only problem with the takeover is its Microsoft thats it other than that he wont even bother to reply in the thread

the thread features MS hence he is here to show that he hates MS and anything MS does

 

[The_Devil_Himself]

yahoo just wants to milk more money.lets see how desperate M$ is to fight google.

 

[slugger]

yahoo just wants to milk more money.lets see how desperate M$ is to fight google.

MS IS desperate

now it remains to be seen if MS goes directly to the shareholders

or it will re-aproach the Yahoo! board with another increased offer

i think MS will first try the second option, and if the boards still rejects it, then it will make an attempt for a hostile takeover

 

[vaibhavtek]

Yahoo thanks for regecting deal...!!
Enjoy..!!! *gigasmilies.googlepages.com/36.gif

 

[The Conqueror]

Yahoooooooooooooo *gigasmilies.googlepages.com/36.gif

 

[mehulved]

i think MS will first try the second option, and if the boards still rejects it, then it will make an attempt for a hostile takeover

From what I read on ZDNet India this is the 2nd bid. First one was carried out quitely, at that time MS did offer $40/share to Yahoo which it rejected.

 

[slugger]

then i guess its time for a hostile takeover bid from MS

lying 4rth in the online ad business is surely giving Ballmer+gates combo sleepless nights/days

MS wud b desperate to correct this fact in their favour whatever way possible

 

[slugger]

it looks like Yahoo!'s fall is inevitable

even Yahoo!'s investors are backing M.S's current proposal

Yahoo big investors may back Microsoft

Most of Yahoo Inc's (YHOO.O) top institutional shareholders may be more interested in making sure Microsoft Corp (MSFT.O) does not overpay for the Web pioneer, because they have more money invested in the bigger software maker, a research report said on Friday.

Financial risk management analysis company RiskMetrics Group found that close to 90 percent of Yahoo's institutional shareholders have a cross-holding in Microsoft, including most of the top 20 -- and generally have significantly more money invested in Microsoft.

The two companies are at a stand-off in Microsoft's $41.7 billion unsolicited bid to acquire Yahoo. Microsoft has offered to buy Yahoo for $31 a share in cash and stock, a bid which Yahoo's board rejected, saying it undervalued the company.

Microsoft countered by saying that its offer was "full and fair," but did not say what it planned to do next. Analysts expect Microsoft to sweeten its bid, possibly to $35 a share, to clinch a deal.

Yahoo shares surged on news of the bid, but Microsoft shares have fallen. Shares of Microsoft were down 11 cents to $28.39 in Friday afternoon trading on Nasdaq, down 13 percent since the offer went public.

Yahoo's stock was down 40 cents to $29.58, representing about a 2 percent premium to Microsoft's half-cash and half-stock offer, which indicates investors are expecting a higher bid.

A shareholder that owns both the target and an acquirer will be more interested in the net benefit of a deal, RiskMetrics said. Shareholders with more money invested in Microsoft than Yahoo will most likely urge Yahoo not to push its case too hard.

"They may be more concerned with whether Microsoft will get caught up in a 'deal frenzy' and suffer the 'winner's curse' by overpaying for Yahoo," RiskMetrics analysts wrote in an M&A Edge Note.

"We can expect shareholders who own both companies to pressure Yahoo directors to extract a material sweetener from Microsoft (which will help Yahoo directors save face) that isn't seen to destroy the perceived benefits of the merger, prior to ... ultimately succumbing."

Earlier this week, Yahoo's second biggest shareholder, Legg Mason (LM.N), urged Microsoft to raise its offer. In a letter to investors, Bill Miller, the star stock-picker at the U.S. asset manager, estimated that fair value for Yahoo was around $40 per share.

RiskMetrics said this was not a big surprise since Legg Mason is one of three of Yahoo's top 20 institutional shareholders with significantly more money invested in Yahoo than Microsoft.

"Don't expect to see many of the other top Yahoo shareholders following Bill Miller's lead," the report said.

source

 

[din]

chances are this merger will happen and then we will have some really solid competition in the online space as opposed to google's monopoly

WOW, reminds me many many old threads and topics !!! Do not want to get into another fight, but I am glad you got it finally

Others - just thinking of the words - 'competition' , 'monopoly' , 'microsoft' etc

 

[nvidia]

Great News!!!

 

[Voldy]

Well its great news that MS offer has been rejected

 

[slugger]

one of the predictions that i had made here seems to be coming true - going directly to the shsreholders. In other words - Hostile takeover!!!!. Love to see the bloodbath that wil ensue

Microsoft to Authorize Proxy Fight at Yahoo

In an escalation of its fight for Yahoo, Microsoft will authorize a proxy fight at the Internet company this week, people briefed on the matter told DealBook. Unless Yahoo quickly reverses course and enters into talks, Microsoft would then seek to nominate a slate of directors to Yahoo’s board by March 13, the final deadline for nominations, and pursue a lenthy campaign to oust the board.

The move, expected to cost about $20 million to $30 million, was Microsoft’s alternative to raising its $44.6 billion bid and is seen as a less expensive way to put pressure on Yahoo’s board. Yahoo rejected Microsoft’s original offer as undervalued.

It is only the latest twist in one of the biggest Internet takeover battles in recent years. Since unveiling its aggressive offer, Microsoft has hinted that it would pursue all avenues to lock up Yahoo as it races to catch up to Google.

As the software giant’s stock has fallen 12.8 percent since announcing the offer two weeks ago, so has the nominal value of the deal, to about $41 billion. Many Yahoo shareholders, including Bill Miller of Legg Mason, have said that Microsoft must raise its bid to strike a deal.

But raising the $31-per-share offer would cost Microsoft an additional $1.4 billion for every dollar added.

‘’We sent them a letter and said we think that’s a fair offer. There’s nothing that’s gone on other than us stating that we think it’s a fair offer,'’ Bill Gates, Microsoft’s chairman,
told The Associated Press on Monday. ‘’They should take a hard look at it.'’

By contrast, waging a proxy fight to oust Yahoo’s directors is comparatively cheaper. Much of the cost involves the hiring of a proxy solicitor and preparing mailers for Yahoo shareholders.

Furthermore, Yahoo’s board is vulnerable in a proxy fight. As The Deal Professor has remarked previously, Yahoo does not have a staggered board, so all of its directors are up for nomination this year. And, per section 3.3 of the by-laws, in a contested election, directors are elected by a plurality of votes cast.

DealBook and The Deal Professor have noted previously that Microsoft’s aggressive approach has long left the door open to this move. But some observers said that the software company would prefer a friendly deal, especially given the possibility of Yahoo employees leaving en masse if a bitter takeover fight erupts.

source

 

[slugger]

Yahoo! has now been sued by its own shareholders for rejecting M.S's acquisation offer

lets see how much longer Yahoo! can hold up against M.S.

SOURCE