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RSS feedsYahoo has responded to Microsoft's attempts to up the stakes on its hostile takeover bid, saying that the proposed $44.6bn (£22.4bn) offer is still too low.
In a letter last Saturday, Microsoft's chief executive Steve Ballmer warned Yahoo's board of directors that it would attempt to stage a shareholder coup if the search firm refuses to accept the original $31 (£15.6) per share bid.
But today two of Yahoo's top directors issued a written reply, albeit one that leaves open the door to negotiation.
"We continue to believe that your proposal is not in the best interests of
Yahoo and our stockholders," wrote chief excutive Jerry Yang and board chairman
Roy Bostock.
"Contrary to statements in your letter, stockholders representing a significant
portion of our outstanding shares have indicated to us that your proposal
substantially undervalues Yahoo. Furthermore, as a result of the decrease in
your own stock price, the value of your proposal today is significantly lower
than it was when you made your initial proposal."
The letter added that Yahoo remains open to any future proposals from Microsoft and other interested parties, but only if the price is right.
"We are steadfast in our commitment to choosing a path that maximises stockholder value and we will not allow you or anyone else to acquire the company for anything less than its full value," said the search firm.
The software giant will increase investment in search, with or without buying Yahoo 19 Feb 2008
Proposed takeover "significantly undervalues" the company, according to Yahoo 11 Feb 2008
The world's biggest software company is offering £22.4bn in shares or cash 01 Feb 2008All IT Finance & Reporting Tags: Ecommerce, Internet, Software, Strategy
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