Yahoo to reject Microsoft bid - source

[Amerigo Vespucci]

Source: CNN Money

(Fortune) -- Yahoo plans to reject Microsoft's $44.6 billion takeover bid, the Wall Street Journal reported Saturday, citing a person familiar with the situation.

The source, according to the paper, said Yahoo's board believes Microsoft's offer of $31 per share "massively undervalues" the company and does not account for the risk that a deal could be blocked by regulators.

The source also said that the company is unlikely to consider any offer below $40 per share, according to the paper. Such a premium would increase the value of the takeover offer by $12 billion.

Microsoft would not comment to Fortune on the report.

Read more: http://money.cnn.com/2008/02/09/magazines/fortune/yahoo_rejects_bid_report.fortune/?postversion=2008020914

[skipos]

1. I wonder what the stock will do now.

It was @$20 before the big, $31 now.

[Lithos]

2. Good for them

I think the only person who this deal is good for is Microsoft, not the current investors of Yahoo!. I do think Yahoo! is undervalued as a marketing company.

L-

[kurth]

3. Typical response to a bid

You just don't accept the first offer that comes along - even if you want to sell.

[pandaexpress]

4. Of course ;)

now back to my 36k job :(