Business | Technology

Yahoo faces seven shareholder suits

Search engine pioneer, Yahoo Inc., is facing seven different shareholder lawsuits prompted by the company’s botched response to Microsoft’s unsolicited takeover bid.

  • Agencies
  • Published: 13:49 February 28, 2008
  • Gulf News

Sunnyvale: Search engine pioneer, Yahoo Inc., is facing seven different shareholder lawsuits prompted by the company's botched response to Microsoft's unsolicited takeover bid.

Yahoo's annual report filed Wednesday gave a breakdown of the seven suits. No news information regarding the February Microsoft offer was shared.

Shareholders of Yahoo Inc. have filed five suits alleging that Yahoo's board breached its duty by failing to negotiate a better deal before rejecting Microsoft's offer.

The other two claim that Yahoo showed unfair favouritism towards Microsoft's bid despite the board's eventual rebuff.

Microsoft offered a $44.6 billion bid, at $31 per share, to take over Yahoo Inc., an offer which Yahoo's board felt was insufficient. Microsoft has since suggested that a hostile takeover may be necessary if a friendly deal is not reached.
A decline of 13% in Microsoft's stock has now reduced the bid value to $40 billion.

Yahoo is currently exploring other options to provide shareholders with a better payoff than Microsoft's offer, one of which involves combining forces with MySpace.com's owner News Corp., or forming an alliance with search giant Google Inc.

According to most analysts, Yahoo will end up going to Microsoft.

  • Rate this article
  • Average reader rating (0 votes) 0 Stars
Tools

Emailing an article to friend is a simple way to share a news item. Your friend will receive an email with your name and email address as well any personal message you choose to send.

The information you provide on this page will not be used to send unsolicited emails.

This service is not intended to encourage spam, and action may be taken against individuals who maliciously enter personal details of another individual.

Share this article

More from Technology

  1. iPhone launches in tech-savvy South Korea

  2. Brother Gulf eyes growing Middle East sales

  3. Cloud computing is here to stay

  4. Mahindra-Satyam shares rally

All articles in Technology

More from Business

Gulf News
Popular in Business
Airlines in the region
Budget travel

Airlines in the region

Take a pictorial look at some of the budget airlines in GCC

Business Editor's choice