Yahoo may reject Microsofts buyout offer
According to the WSJ, Yahoo is planning to reject Microsofts current buyout offer, stating that its undervalues the stocks value.
Yahoo directors concluded after a meeting Friday that the unsolicited offer — worth nearly $45 billion when it was announced on Jan. 31 — “massively undervalues” Yahoo, according to a person familiar with the situation. The board plans to send a letter to Microsoft today, spelling out its position.
Considering Microsofts offer is $31 a share or 44.6 Billion dollars, a 62% premium over the Yahoo stock price at the time the offer was made, im not sure how much leverage Yahoo has to bargain with. Im also not sure if another company would be willing to match or beat that offer.
It appears Yahoo’s shareholders are just fishing for a maximum market value.
