12 February 2008 | Team Tamar

Yahoo! to reject Microsoft’s £23bn bid?

According to a report released by The Wall Street Journal, Yahoo’s board plans to reject the £23bn offer made by Microsoft.

Citing ‘persons familiar with the situation’, the WSJ reported that Yahoo!
board members concluded that the offer from Microsoft massively undervalued the
company.

The £15.93 per share bid, that was made public on February 1, is believed to be Microsoft taking advantage of the recent slump in the share price.

The Yahoo! board are not willing, or rather ready, to consider a offer below £20.56 per share. A £20.56 per share bid would raise Yahoo’s price by about £6.2bn, valuing the company at around £28.8bn.

Team Tamar