Microsoft said that its $44.6 billion unsolicited offer for Yahoo was generous and it expects Yahoo's board and shareholders to agree to the buyout quickly.
SEATTLE (Reuters) - Microsoft Corp said on Monday that its $44.6 billion unsolicited offer for Yahoo Inc was generous and it expects Yahoo's board and shareholders to agree to the buyout quickly.
"We trust the Yahoo board and the Yahoo shareholders will join with
us quickly in deciding to move down an integrated path," Microsoft
Chief Executive Steve Ballmer said in an annual strategy meeting with
analysts.
Microsoft's comments follow a weekend of maneuvering by Yahoo,
which, according to sources familiar with Yahoo's strategy, is
considering a business alliance with Google Inc
to rebuff Microsoft's proposal. It has also received preliminary
contacts from media, technology, telecommunications and financial
companies, another source close to Yahoo said.
At the same meeting, Microsoft Chief Financial Officer Chris Liddell
also said the company may borrow money for the first time in its
history to fund a portion of the 50-50 cash and stock offer for Yahoo.
"If you look at the cash component ... we could fund most of that
through our cash holdings, but it's likely we're actually going to
borrow for the first time," said Liddell. "It's going to be a mixture
of the cash we have on hand plus debt."
Liddell said he expects Microsoft's revenue to grow at a
double-digit percentage in the coming fiscal year starting in July
despite a potential U.S. economic slowdown.
Microsoft also announced that its first major update to Windows
Vista was released to manufacturing. Usually, large organizations wait
for the first major update before deploying a new operating system.
Shares of Microsoft rose 5 cents to $30.50 in early Nasdaq trading, while Yahoo shares rose 44 cents to $28.82.
(Reporting by Daisuke Wakabayashi and Michele Gershberg in New York, editing by Dave Zimmerman)
Copyright
Reuters 2008. All rights reserved. Users may download and print extracts of
content from this website for their own personal and non-commercial use only.
Republication or redistribution of Reuters content, including by framing or
similar means, is expressly prohibited without the prior written consent of
Reuters. Reuters and the Reuters sphere logo are registered trademarks or
trademarks of the Reuters group of companies around the world.
