Microsoft CEO Steve Ballmer thinks Yahoo has a good, lucrative deal on the table. Is a proxy battle at Yahoo about to ensue?
HANOVER, Germany, March 3 (Reuters) - Microsoft Corp still considers its takeover offer for Yahoo Inc, currently valued at about $40.9 billion, to be
reasonable despite Yahoo's rejection of the bid, Microsoft's
chief executive said.
"We still think the deal makes sense with the price and
structure that we announced and we hope that over time that
becomes a reality and we're working toward that," CEO Steve
Ballmer said at a news conference on Monday.
"There's been a range of dialogue and there's a range of
alternatives being considered. I think it's best for me not to
get into the detail," Ballmer said at the event in Hanover,
Germany, on the eve of CeBIT, Europe's biggest technology
fair.
Microsoft officials did not respond to questions asking to
clarify whether Ballmer was speaking about dialogue with Yahoo
that is ongoing or if he was referring to conversations with
Yahoo that took place in the past.
Ballmer declined to say whether he had authorized or would
authorize a proxy fight to convince Yahoo shareholders to agree
to the deal by nominating a slate of directors to take control
of Yahoo's board.
The two companies are at a stand-off in Microsoft's
unsolicited bid to acquire Yahoo. Microsoft has offered to buy
Yahoo for $31 a share in cash and stock, which Yahoo's board
rejected, saying it undervalued the company.
The deal, which would increase its competitiveness against
Internet search and advertising giant Google Inc, was
originally worth $44.6 billion, but Microsoft's stock slide
has pushed down the deal's value.
Microsoft Chief Financial Officer Chris Liddell said
nothing has changed in the impasse between the two companies.
"We continue to look at our options," Liddell said at the
Morgan Stanley Technology Conference. "There is no news on
Yahoo."
Yahoo shares rose 22 cents to $28.00 in Nasdaq trading. The
stock is trading 1.5 percent above the deal price, an
indication that investors believe Microsoft will sweeten its
offer for Yahoo. Microsoft shares were flat at $27.20 on the
Nasdaq.
Ballmer said there is a lot of merit in the deal for
Microsoft and the company is trying to have "appropriate"
levels of engagement with Yahoo shareholders, management and
board of directors.
(Reporting by Georgina Prodhan and Daisuke Wakabayashi in
Seattle; Editing by Maureen Bavdek)
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