Yahoo Rejects Microsoft's Bid Again
Professor Michael Klausner is quoted in a Macro-World Investor article about yet another rejection by Yahoo of a Microsoft takeover bid:
"Basically Microsoft infers that Yahoo has no alternative deals in the offing, therefore there is no need to raise its price," said Michael Klausner, a Stanford Law School professor who specializes in corporate law and governance.
"Microsoft still prefers a negotiated deal to a proxy fight." Mr. Ballmer's letter puts pressure on the board to act quickly or face the possibility that they will fail to get the best deal possible for Yahoo shareholders, Mr. Klausner said. But waging a battle over board seats while offering a lower price for Yahoo could prove to be a gamble for Microsoft. In recent weeks, many large Yahoo shareholders have indicated that they would favor a deal with Microsoft, at a slightly higher price. It is not clear that Yahoo shareholders would be happy with a deal at the current price, let alone at a price that is even lower. Still, some experts in mergers and acquisitions say that without an alternative, Yahoo shareholders are likely to vote in favor of a Microsoft offer, even if it is lower.