updated 06:25 pm EDT, Thu May 8, 2008
Microsoft withdraws board
Microsoft has put the final nail in the coffin in terms of the Yahoo merger, as the proposed proxy board received notice from the software giant Thursday morning, dismissing any responsibilities the board would have had in the event of a hostile takeover. The Wall Street Journal writes that Microsoft's law firm Sullivan & Cromwell sent out the notice, indicating that company is firmly rooted in its decision to not make a hostile bid for Yahoo.
The withdrawal disappointed Yahoo investors – some of which were holding out for a high $30-per-share price – sending stock prices plummeting, with some of the value recuperated over the following days as confidence was restored.
Yahoo was also weighing an option of electing its own alternate board, according to insiders familiar with the matter.