Yahoo rejects Microsoft bid

Washington: Yahoo has rejected a takeover bid worth more than $40bn from computer software giant Microsoft citing the bid as too low.

Yahoo said the offer "substantially undervalues" the company and is not in its shareholders' interests.

Microsoft's offer was worth $31 a share, 62% above the level at which Yahoo stocks were trading when the offer was made on 1 February.

A merger between Microsoft and Yahoo would create one of the biggest technology firms, and would rival industry leader Google.