Monday, February 11, 2008
What will Microsoft do, now that the Yahoo board has formally rejected its $45 billion offer as "massively" undervaluing the company? Likely next moves range from the aggressive, such as starting a proxy contest or a tender offer, to more conciliatory, like increasing its bid. Its strategy likely includes meeting with Yahoo's large shareholders to enlist their support. Since Microsoft's announcement, short-term oriented hedge funds have reportedly been buying Yahoo shares. NYTimes, Yahoo Bidder Wants a More Aggressive Microsoft; WSJ, Yahoo's Rejection Pressures Microsoft To Mull a New Bid.