updated 11:50 pm EST, Mon February 11, 2008
Microsoft responds to YHOO
In response to Yahoo's open rejection of Microsoft's proposed buyout, Microsoft issued a statement countering Yahoo's claim that the offer was undervalued. The software giant said that shareholders on both sides would benefit greatly from the merger, and that a timely transaction would be "in the best interests of all parties". Microsoft also urged investors to consider the positive side of having a combined company, highlighting an "exciting set of solutions for customers," as well as a stronger online front.
"The Yahoo! response does not change our belief in the strategic and financial merits of our proposal," the statement said. "As we have said previously, Microsoft 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."
Microsoft's proposal consisted of a $44.6 billion bid, which the company says is a fair assessment of Yahoo's value, based on $31 per share - a 62-percent premium above the price of Yahoo's common stock, based on closing values on January 31st.