As you might expect, Yahoo's statement that Microsoft's offer undervalues the company was rebuffed by Microsoft, which has now started making ominous statements. The phrase "all necessary steps" in the last paragraph may mean that Microsoft may seek to out Yahoo's board in some fashion to allow the increasingly hostile merger to go through.
Here's what Microsoft said, in an unattributed statement. The company reiterated that the half-stock, half-cash offer of approximately $44.6 billion would be a 62 percent premium over Yahoo's closing stock price on Jan. 31.
(It's quite entertaining to read the following statement aloud in your favorite villain's voice, especially the first and last paragraph.)
"It is unfortunate that Yahoo! has not embraced our full and fair proposal
to combine our companies. Based on conversations with stakeholders of both
companies, we are confident that moving forward promptly to consummate a
transaction is in the best interests of all parties.
"We are offering shareholders superior value and the opportunity to
participate in the upside of the combined company. 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.
"A Microsoft-Yahoo! combination will create a more effective company that
would provide greater value and service to our customers. Furthermore, the
combination will create a more competitive marketplace by establishing a
compelling number two competitor for Internet search and online
advertising.
"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 ...