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Title: Yahoo Says No Deal Unless Microsoft Raises Bid

Author: Kopytoff, Verne Article Type: Company
Source: San Francisco Chronicle, pD1(2) Publication Date: Apr 8, 2008
URL of Publication: http://www.sfgate.com

The outcome of Microsoft Corp.'s attempt to acquire Yahoo! Inc. is still up in the air following the decision of Microsoft chief executive Steve Ballmer to write a letter to the Yahoo! leadership expressing his frustration with the pace of negotiations. In the letter, Ballmer threatened to unseat Yahoo!'s board by nominating directors more friendly to the merger proposal if the deal isn't signed within three weeks. In response, Yahoo! reaffirmed its opposition to the deal and its belief that Microsoft has undervalued the company. The Yahoo! team did leave open the possibility of accepting a bigger offer, however. It is now unclear whether the two sides will ever reach an agreement, though analysts predict that a deal at a slightly higher price is still the most likely outcome. Exactly how high Microsoft will go remains to be seen. Ballmer has said, however, that if the takeover turns hostile, the price offered by Microsoft will decrease. He has also threatened a proxy contest. Yahoo! is set to announce its first quarter earnings on April 22, and the numbers could effect the negotiations. Disappointing results for Yahoo! may make the Microsoft offer appear sweeter.

Companies:
Microsoft Corp Yahoo! Inc

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