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Article

Title: Yahoo Calls Microsoft Bid a Distraction

Author: Kopytoff, Verne Article Type: Company
Source: San Francisco Chronicle, pC1(2) Publication Date: Feb 28, 2008
URL of Publication: http://www.sfgate.com

Yahoo! Inc. continues to face dangers even after rejecting Microsoft Corp.s $44.6 billion unsolicited takeover bid. These include distracted executives and the possibility that advertisers, publishers or employees may flee due to the uncertainty of the situation. Yahoo! admitted these dangers in its annual report, though provided little new information. There are also seven shareholder lawsuits pending against Yahoo! They allege the company did not look to shareholders interest following the decision to reject Microsofts bid. Microsoft offered $31 a share, a 62 percent premium over their price at that time. Yahoo! has responded that the suits will not have a material adverse effect on our financial position. To encourage workers to stay the company has initiated a new severance pay plan that provides four to 14 months worth of salary should they leave the company after the merger. The Yahoo! board is considering all alternatives to Microsofts offer, while Microsoft has indicated that it will continue with its acquisition, and will even embark on a hostile takeover if Yahoo! refuses to negotiate.

Companies:
Microsoft Corp Yahoo! Inc

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