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Yahoo said Monday its board of directors has rejected Microsoft's 44.6-billion-U.S.-dollar unsolicited bid to buy the company, arguing the offer "substantially undervalues" the Internet giant's worth. "The proposal is not in the best interests of Yahoo and our stockholders," the Silicon Valley search engine giant said in a statement.
Yahoo said it would continually evaluate all of its strategic options in the context of the rapidly evolving industry environment and remain committed to pursuing initiatives that maximize value for all stockholders. However, some industry analysts said Microsoft may come back up with a better offer following numerous reports that Yahoo has turned down the buyout offer from the software giant. Microsoft has not yet made a response to Yahoo's rejection of its offer. Analysts said Microsoft could choose to go hostile by issuing a tender offer to Yahoo shareholders or by mounting a proxy battle to nominate its own directors to replace the board at Yahoo. The software giant announced its buyout offer on Feb. 1, days after Yahoo's stock price slipped to a new low in several years. Reports said Yahoo's board of directors discussed the Microsoft bid on Friday as well as other potential options for the troubled company. Among those options is a potential cooperation deal with Google. Microsoft's effort to buy Yahoo is seen widely as the software giant's latest attempt to challenge Google's dominance of the lucrative on-line search and advertising markets. Google has been gaining ground on Yahoo, which is also under pressure from the increasing popularity of social networking websites like Myspace and Facebook. |
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