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Microsoft issues Yahoo a three week deadline

by interpreters @ 2008-04-07 - 17:18:01

Having grown tired of chasing the approval of Yahoo directors,Microsoft now has issued the company an ultimatum; agree to its $US44billion buyout offer within three weeks, or Microsoft will take itsoffer directly to shareholders.

On Jan. 31, Microsoft offered to acquire Yahoo for US$44.6 billion, orUS$31 per share, in cash and stock. Yahoo's board rejected the offer,which has since declined in value to US$29.36 per share because of asubstantial drop in Microsoft's share price.

"If we are forced to take an offer directly to your shareholders, thataction will have an undesirable impact on the value of your companyfrom our perspective, which will be reflected in the terms of ourproposal," wrote Microsoft's chief executive, Steve Ballmer in an openletter sent to Yahoo!'s board on Saturday.

Breaking nearly two months of silence since Yahoo's board rejectedMicrosoft's buyout offer, Ballmer reiterated Microsoft's opinion thatits offer was "generous" and said the company had expected that a dealwould be struck swiftly.


 
 

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