Yahoo to reject Microsoft's 44 billion dollar offer

Washington, Feb.10 : The board of Yahoo Incorporated has decided to spurn Microsoft Corporation's 44.6 billion dollar takeover bid. News reports said Yahoo's decision could lead to a showdown between two prominent technology companies, and in the light of this development, Internet search leader Google Incorporated's chances of striking a deal with Yahoo appear bright. There is however a possibility that Microsoft could try to override Yahoo's board by directly approaching the latter's shareholders. It would require Microsoft to oust Yahoo's current 10-member board. Alternatively, Microsoft could agree to raise the stakes and bid as much as 35 dollars for each Yahoo share.

Yahoo's board reportedly reached its decision after exploring a wide variety of options, according to inside sources. The sources said that Yahoo's board felt Microsoft's offer to be inadequate. Led by company co-founder and board member Jerry Yang, Yahoo now will be under intense pressure to lay out a strategy that will prevent its stock price from collapsing again. Yahoo had earlier spurned a Microsoft offer of 40 dollars per share, and sources said that the former is at least interested in this price being offered.

ANI