Yahoo! says no to Microsoft again
Yahoo! won't sell to anyone for anything less than full value, warns CEO Jerry Yang
Yahoo! has rejected Microsoft's three-week takeover deadline, stating that Microsoft's current offer does not represent the true value of the company.
In an open letter to Microsoft, from the CEO and the chairman of the Yahoo! board, the company says that Microsoft's $31 per share offer substantially undervalues Yahoo! and reiterates that the company rejects the offer, as it did on 11th February.
On Saturday Microsoft published a letter to Yahoo! saying that the Internet giant had failed to open sensible discussions with Microsoft over its takeover bid, and that unless Yahoo! accepted the bid within three weeks, then Microsoft would open a hostile proxy takeover bid.
In response, the letter from Yahoo! CEO Jerry Yang and chairman Roy Bostock says that the company clearly rejected Microsoft's offer already, and has been seeking alternative offers to maximize shareholder value.
While the strongly-worded statement did not rule out accepting a higher bid from Microsoft, Yang said: "We will not allow you or anyone else to acquire the company for anything less than its full value."
Yahoo! also denied that it faced any dissent from investors, saying that shareholders representing a "significant portion" of outstanding stock also felt that the deal undervalued Yahoo!
Shares in Yahoo! fell to $27.70 by end of trading on Monday, down from $28.40 on Friday.