Microsoft to pursue takeover bid for Yahoo!

Microsoft to pursue takeover bid for Yahoo!
PTI
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First Published: Tue, Feb 12 2008. 03 50 PM IST
Updated: Tue, Feb 12 2008. 03 50 PM IST
New York: Microsoft Corp, the world’s largest software firm whose $44.6 billion takeover bid was rejected by Yahoo! On Monday, said it will move ahead with its offer for the internet major.
Yahoo! had said its board rejected the offer as it undervalued the company.
Replying to it, Microsoft said in a statement that it was offering shareholders of Yahoo! a superior value and the opportunity to participate in the upside of the combined company.
According to the statement, the combination would create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.
“It is unfortunate that Yahoo! has not embraced our full and fair proposal to combine our companies. Based on conversations with stakeholders of both the companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties,” Microsoft said.
The software giant is pursuing the internet major to strengthen its competitive edge against world’s most popular search engine Google in the online advertising space.
”The Yahoo! response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo! shareholders are provided with the opportunity to realise the value inherent in our proposal,” it said.
On February 1, Microsoft had announced its proposal to acquire Yahoo! for $44.6 billion in cash and stock. The firm had offered $31 per share.
Further, the statement added that the combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market.
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First Published: Tue, Feb 12 2008. 03 50 PM IST
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