Stephen Withers
Monday, 07 April 2008 08:05
IT Industry -
Strategy
Page 1 of 2
Microsoft has given the Yahoo! board three weeks to negotiate a merger agreement or face a proxy battle.
A letter sent by Microsoft CEO Steve Ballmer to Yahoo!'s directors points out that over two months have passed since the acquisition was first proposed, and that market changes mean the premium offered is now greater than the 62 percent that existed on January 31 and that was intended to prompt "a speedy and ultimately friendly transaction."
Pointing out that there has been "no meaningful negotiation" in those two months, Ballmer warned the Yahoo! board "If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo! board."
Presumably aiming to increase pressure on the Yahoo! directors from the company's shareholders, Ballmer added "If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal."
The original offer was $US31 per share, payable in a mix of cash and Microsoft shares. On Friday, Yahoo closed at $US28.36
Latest Headlines from IT INDUSTRY
