Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Quick Hits: Yahoo Feels the Microsoft Heat


Brief scrutiny of today's headlines

1).jpg" alt="" />Microsoft (MSFT) is turning up the heat in its attempt to buy Yahoo (YHOO).

Microsoft Chairman Steve Ballmer sent a letter to Yahoo's board over the weekend, warning that it had three weeks to accept the $31 per share offer it made more than two months ago. When the deadline expires Microsoft will go hostile, offering shareholders a lower price or nothing at all.

According to The Wall Street Journal, Yahoo CEO Jerry Yang and Chairman Roy Bostock responded to Ballmer with a letter reconfirming their stance that the Microsoft offer "substantially undervalues" the Yahoo brand.

Yahoo shares are currently trading at 10% below the original offer, indicating skepticism over the deal getting done at $31. If Microsoft resorts to a hostile bid and starts a proxy fight, shareholders may see the value of their holdings erode even further.

Yahoo may be asking for a heap of trouble by continuing to rebuff Microsoft. After all, who would want to play hardball with this guy?

For more on Microsoft check out Hoofy & Boo's always astute report.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos