SEATTLE (Reuters)
- Microsoft Corp's board met on Wednesday to discuss its stand-off with
Yahoo Inc over its $41.8 billion takeover bid, but failed to reach a
decision on what to do next, according to a Wall Street Journal report.
Microsoft's board of directors is still weighing whether to adopt a
hostile approach and nominate a proxy slate of directors to replace
Yahoo's board, sweeten its cash-and-stock offer for Yahoo, or possibly
walk away from the deal, the Journal said.
A Microsoft spokesman was not available for comment.
A Microsoft-imposed deadline for Yahoo to start talks on a final
deal or face a proxy battle passed last Saturday. An announcement from
Microsoft is expected later this week, the report said.
Microsoft, according to the report, has indicated it would be
willing to raise its bid to as much as $33 per share but such an offer
may still fall short of the $35 to $37 per share that Yahoo's major
shareholders are looking for.
Meanwhile, Microsoft Chief Executive Steve Ballmer, who is also a
member of the board, has appeared ready in recent days to abandon the
offer since Yahoo and its major shareholders want significantly more
money, according to the Journal.
Ballmer had said last week that Microsoft was considering walking
away from the deal. But most Wall Street analysts dismiss this as a
hardball negotiating tactic rather than a real threat to end its
two-year-long pursuit of a deal.
The value of Microsoft's offer, originally valued at $44.6 billion
at $31 a share, has fallen to $29.06 a share due to a drop in the value
of Microsoft's stock.
(Reporting by Daisuke Wakabayashi; Editing by Braden Reddall)
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