SEARCH outfit Yahoo is facing a shareholder revolt after rejecting a $44.6 billion takeover bid from Microsoft over the weekend.
Shareholders are already miffed at the way that the board had been running Yahoo after losing 40 per cent of the value of the company over the last year.
Microsoft has two options now. It can up its bid, and risk annoying its own shareholders, or spark a shareholder revolt. This will involve spear-heading an attack to oust Yahoo's board.
Yahoo claimed that the rejection was due to Microsoft not offering enough for the company, but many investors feel that it is more likely to be personal. The board has been rushing around trying to find someone who could at least match Microsoft's bid of $31 per share without any success.
Other calmer voices say that it is more likely that Vole will tell Yahoo that the $31 million is Steve Ballmer's final offer and they should take it or face the wrath of their shareholder's.
Technology investment banker Ken Marlin told Associated Press that Yahoo has had little choice but to turn a cold shoulder toward Microsoft in the hope of getting more money from the Vole. He said that if they didn't, they would be accused of malfeasance.
Yahoo is expected to make an official statement today on the deal. µ
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