Microsoft responds to Yahoo's refusal

— 10:43 AM on February 12, 2008

As we said yesterday, Yahoo opted to refuse Microsoft's $44.6 billion takeover bid. The company believes its Redmond rival is offering too little, and considering how stock prices have evolved since the buyout offer was made, the position makes sense. Yesterday, some analysts speculated Microsoft would either up its bid or attempt to bypass Yahoo's board by making an offer directly to shareholders.

Today, Microsoft has released an official response to Yahoo's refusal. In the response, Microsoft starts off by saying Yahoo's decision is "unfortunate" then goes on to re-assert its confidence that an acquisition is "in the best interest of all parties." There's no mention or even any real hint of a higher bidding price, and in fact Microsoft claims it is "offering shareholders superior value and the opportunity to participate in the upside of the combined company." Microsoft closes by saying it "reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal."

According to the AFP, the wording of the statement suggests Microsoft could attempt to woo shareholders and get them to oust Yahoo board members at the annual elections in the middle of this year.

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