Yahoo Slams Microsoft Bully Tactics

Yahoo states, “We continue to believe that your proposal is not in the best interests of Yahoo and our stockholders”.

Yahoo has declined Microsoft’s proposal and it’s attempt to buy out the company.

With the recent mail that came from Microsoft chief executive Steve Ballmer about giving a warning to Yahoo that Microsoft will lobby Yahoo’s stockholders and then elect new board of directors if the current board does not agree to the said proposal of buying them out.

Yahoo had stated a letter addressed in response to the letter of Ballmer saying that the board of director’s view of the proposal have not changed at all.

The statement was, “We continue to believe that your proposal is not in the best interests of Yahoo and our stockholders,”

“Contrary to statements in your letter, stockholders representing a significant portion of our outstanding shares have indicated to us that your proposal substantially undervalues Yahoo.”

In late January Microsoft had offered to but Yahoo with a stock deal of $44 billion. Yahoo believed that Yahoo had been undervalued by the amount it has offered two weeks after the offer.

Yahoo stated that the company would have not ruled out entirely if Microsoft would have made a better offer than $44 billion. Yahoo had yet to repeat it again in their latest statement.

The letter read, “Our board carefully considered your unsolicited proposal, unanimously concluded that it was not in the best interests of Yahoo and our stockholders, and rejected it publicly on 11 February 2008,”

“At the same time, we have continued to make clear that we are not opposed to a transaction with Microsoft if it is in the best interests of our stockholders. ”

At the latter part of the letter, Yahoo’s letter had grown more harsher towards Ballmer and the deadline that amounted for three weeks that Ballmer had laid down.

Yahoo said, “We consider your threat to commence an unsolicited offer and proxy contest to displace our independent board members to be counterproductive and inconsistent with your stated objective of a friendly transaction,”

“We are confident that our stockholders understand that our independent board is best positioned to objectively and knowledgeably evaluate our company’s alternatives and to maximize value.”