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Microsoft delivers ultimatum to Yahoo!
Microsoft CEO Steve Ballmer has given Yahoo! three weeks to begin bargaining in good faith or face a hostile takeover. In a letter sent to Yahoo!'s board of directors, Ballmer claims that his company's initial bid to acquire Yahoo! at a 62% premium to its closing price on 31 Jan was "generous". He adds that if the companies fail to reach 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".
Ballmer also indicated that if Yahoo! continues to stall, Microsoft might lower its offer, initially valued at USD44.6 bn, or USD31 a share. Analyst consensus is that the two companies will eventually reach a deal priced at around USD35bn.
