Yahoo Expected to Reject Microsofts Takeover Offer

Yahoo’s board plans to reject Microsoft’s $44.6 billion hostile bid in a letter on Monday, saying the offer undervalues Yahoo, people involved in the discussions said Saturday.

Microsoft Looks to Yahoo (February 9, 2008) Microsoft, which hopes Yahoo will help it compete more effectively against Google, is likely to continue its pursuit.

The decision to reject the offer was made after a board meeting Friday in which directors discussed ways the company might respond to Microsoft’s week-old bid. The board heard presentations from Yahoo’s management and its bankers, who made the case that the company was worth more than the $31 a share Microsoft offered, people familiar with the discussions said.

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