Microsoft, it seems, is hell-bent on taking control of Yahoo, and isn’t about to let a little thing like Yahoo rejecting their unsolicited $31 per share bid get them down. According to a report published Tuesday in The New York Times, Microsoft is about to launch a battle to take control of Yahoo’s board this week.
Microsoft will nominate a slate of directors to Yahoo’s board, in an attempt to pressure Yahoo directors to negotiate with Microsoft. This method - known as a proxy fight - is actually viewed as a less costly way to buy the company.
Microsoft offered $31 per share, a deal which was initially worth $44.6 billion. Yahoo is reportedly holding out for $40 per share, and thought that Microsoft’s bid seriously undervalued the company.
Perhaps in a warning to Yahoo, Microsoft Chairman Bill Gates told the AP on Monday that Yahoo’s board “should take a hard look” at their original offer. According to those in the investment community, in such a proxy battle, insitutional investors would back Microsoft.
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1 response so far ↓
Ireland Web Design on Feb 20, 2008 at 6:16 am
Ha, thems fightin woids!
It’s difficult to picture Bill Gates being that scary. I’m following this story with great interest.
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