Microsoft Sees No Reason to Raise Yahoo BidBy Reuters - | Posted 2008-04-01 Email Print
Sources are saying that Microsoft feels confident in its initial bid for the takeover of Yahoo. Will the deal get done?
SAN FRANCISCO (Reuters) - Microsoft Corp sees no reason to increase its bid for Yahoo Inc, two months after it made a $44.6 billion offer to buy the Internet company, people familiar with Microsoft's plans said on Monday.
"Why would Microsoft bid against themselves? The company sees no reason to bid against itself," one of the people said.
The people requested anonymity because they are not authorized to speak on behalf of the company.
A Yahoo spokeswoman declined to comment.
Microsoft and Yahoo executives have met once to discuss a potential merger since Microsoft made its $31-a-share for Yahoo on January 31, other sources told Reuters earlier.
Although some technology blogs have speculated that Microsoft is planning to raise its bid, one person familiar with the company's plans said Microsoft does not feel the need to pay more because no viable strategic alternatives have emerged.
Since Microsoft's offer, Yahoo has held talks with Rupert Murdoch's News Corp and Time Warner Inc's AOL division, sources told Reuters earlier.
Microsoft also feels comfortable biding its time because a recent roadshow by top Yahoo executives, intended to shore up support among U.S. institutional investors and prove the bid was too low, was "underwhelming," one of these people said.
Yahoo rejected Microsoft's offer, currently valued at about $42 billion, in February, saying it "substantially undervalues" the company.
Shares of Yahoo closed Monday's session down 0.2 percent at $28.93 on the Nasdaq, while Microsoft shares closed up 1.6 percent at $28.38.
(Additional reporting by Eric Auchard)
(Reporting by Anupreeta Das in San Francisco and Daisuke Wakabayashi in Seattle, editing by Elizabeth Fullerton)
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