Business | Technology
Microsoft 'to authorise proxy battle' for Yahoo
Microsoft will authorise a proxy battle for Yahoo this week to convince the Web company's shareholders to agree on a takeover deal that the Yahoo board so far has rejected, the New York Times DealBook blog said.
- Reuters
- Published: 01:15 February 21, 2008
Seattle: Microsoft will authorise a proxy battle for Yahoo this week to convince the Web company's shareholders to agree on a takeover deal that the Yahoo board so far has rejected, the New York Times DealBook blog said.
Quoting people briefed on the matter, the website said Microsoft, which has been expected to raise its cash-and-stock bid originally worth $44.6 billion, would seek to nominate a slate of directors by March 13, if Yahoo's board did not enter talks.
A Microsoft spokesman said the company had always maintained it reserves the right to exercise all options but declined to comment specifically on the DealBook report.
A Yahoo spokeswoman declined to comment, saying it does not respond to rum-our or speculation.
A source said a proxy fight would cost about $20 million to $30 million, but the source was not aware of Microsoft making the decision to pursue the fight.
"Microsoft is doing the smart thing. It's giving both the carrot and the stick," said Morningstar analyst Toan Tran. "The carrot was the big premium on Yahoo stock and now the stick is the threat of a proxy fight."
Proxy fights waged by corporations to facilitate a hostile acquisition are rare and represent less than five per cent of all proxy fights since 2001.
Microsoft Chairman Bill Gates said on Monday that there was "nothing new" in the Yahoo takeover process. "We've sent our letter and we've reinforced that we consider that it's a very fair offer," he said.
The two companies are at a stand-off in Microsoft's unsolicited bid to acquire Yahoo. Microsoft has offered to buy Yahoo for $31 a share in cash and stock, a bid which Yahoo rejected.
Share this article
Related Articles
More from Technology
More from Business
Popular in Business
-
Budget travel
Airlines in the region
Take a pictorial look at some of the budget airlines in GCC
Business Editor's choice
-
New law to protect investor rights
Dubai land department is studying legislation to protect property purchasers
-
Global Village
Revamped layout featuring four cultures to greet visitors this season
-
Cloud computing is here to stay
Managing security effectively is critical when sharing data over the internet
