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Yahoo Formally Rejects Microsoft's Bid

Posted on: Monday, 11 February 2008, 12:00 CST

Shares of Yahoo! Inc. and Microsoft Corp. both climbed Monday morning on the announcement Yahoo! was rejecting Microsoft's nearly $45 billion offer.

Yahoo! shares gained 2.3 percent and Microsoft gained 0.3 percent in anticipation of the announcement, CNNMoney.com reported.

Microsoft's offer to buy Yahoo! has not triggered any rival bids, which has prevented Yahoo! from leveraging a better deal than the $31 per share offering Microsoft initiated in January. Nevertheless, the board believes that Microsoft's proposal substantially undervalues Yahoo!, including our global brand, large worldwide audience, significant recent investments in advertising platforms and future growth prospects, the company's statement said.

Analysts say Yahoo! is holding out for a better price. Rival Internet search company Google, the No. 1 search engine in the world, has criticized the deal. But, it has not come forward with an offer of its own.

Source: United Press International

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