MrApples

AN FRANCISCO (AP) - Yahoo Inc.'s board will reject Microsoft Corp.'s $44.6 billion takeover bid after concluding the unsolicited offer undervalues the slumping Internet pioneer, according to a person familiar with the situation.

The decision could provoke a showdown between two of the world's most prominent technology companies.

If the world's largest software maker wants Yahoo badly enough, Microsoft could try to override Yahoo's board by taking its offer—originally valued at $31 per share—directly to the shareholders. Pursuing that risky route probably will require Microsoft to attempt to oust Yahoo's current 10-member board.

Alternatively, Microsoft could sweeten its bid. Many analysts believe Microsoft is prepared to offer as much as $35 per share for Yahoo, which still boasts one of the Internet's largest audiences and most powerful advertising vehicles despite a prolonged slump that has hammered its stock.

Yahoo's board reached the decision after exploring a wide variety of alternatives during the past week, according to the person who spoke to The Associated Press. The person didn't want to be identified because the reasons for Yahoo's rebuff won't be officially spelled out until Monday morning.


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Ciuciaro

Well what could you do with only 44,6 billion anyway.

King Stubby

spend it all on aids and global warming research, NAH! just a tiny settlement for the workers of Yahoo, and maybe a few Jacuzzis!

EtherealCookie

Whoa. Meh, Yahoo should just bend down to Microsoft. Microsoft shall rule the Tech world one day!