Yahoo has a lot on its plate with the revelation that it's facing lawsuits now in the wake of its rejection of Microsoft's ownership bid. NEW YORK, Feb 27 (Reuters) - Yahoo Inc said it
faces seven shareholder lawsuits over its handling of Microsoft
Corp's unsolicited $42 billion buyout proposal and
that dealing with the takeover bid has created a distraction
for its management.
Four of the lawsuits were filed in California Superior
Court and three were filed in Delaware Chancery Court, Yahoo
said on Wednesday in a filing with the U.S. Securities and
Exchange Commission.
"We do not believe, based on current knowledge, that any of
the foregoing legal proceedings or claims are likely to have a
material adverse effect on our financial position," Yahoo
said.
Yahoo has rebuffed Microsoft's offer, which represented a
62 percent premium of its share price when it was announced on
Feb. 1, saying it significantly undervalued the company's
audience, advertising platform and investment holdings.
The company called the Microsoft bid a "significant
distraction" for management and employees, saying it had the
potential to unnerve business and advertising partners and to
make it difficult to retain or hire talent.
(Reporting by Michele Gershberg; Editing by Toni Reinhold)
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