Microsoft threatens Yahoo with proxy fight

[OhioChick]

Says Yahoo has three weeks to agree to takeover offer or face battle to replace board, lower offer

April 5, 2008 (Computerworld) Microsoft Corp. today told Yahoo Inc. that it has three weeks to agree to its unsolicited $42 billion takeover bid or face a proxy fight and possibly a lower offer.

"If we have not concluded 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," said Microsoft CEO Steve Ballmer in a letter he sent to today Yahoo's board.

Ballmer added that if Microsoft was forced to take an offer directly to Yahoo's shareholders, it would most likely reduce its offer.

"It is unfortunate that by choosing not to enter into substantive negotiations with us, you have failed to give due consideration to a transaction that has tremendous benefits for Yahoo's shareholders and employees," Ballmer said. "We think it is critically important not to let this window of opportunity pass."

"If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal," Balmer wrote.

Yahoo could not immediately be reached for comment.

http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9075158&intsrc=hm_list

[MadMaddie]

1. So is this blackmail, intimidation...this seems criminal.

Mafia like.

[OhioChick]

2. Sure Does, Doesn't It? n/t

[sellitman]

3. I'd rather see Yagoogle than see MS win.

Just saying.

[raqi]

4. Maybe Yahoo shareholders should watch this first (video)

http://www.youtube.com/watch?v=wvsboPUjrGc">Ballmer Rant

And, then ask themselves is they really want to put their future's in this man's hands?

The same man who also 'missed' the internet, has overseen the Vista fiasco, laughed at the iPhone, just to name few examples of his lack of vision.

The bigger they are, the harder they fall.

[Eric Condon]

5. I laugh at the iPhone too, but probably not for the same reasons he did.

nt