May 6, 2008
yahoo
The CEO of Yahoo, Jerry Yang, will meet Monday to the discontent of a number of its shareholders after Microsoft's decision to forgo this weekend in its offer on the internet, in the absence of agreement on price.
He will have to explain why the latest proposal improved software giant has not convinced. A merger between Microsoft and Yahoo would have been the biggest operation of its kind ever undertaken in the world of IT.
Microsoft was ready to raise five billion dollars to repurchase its proposal to bring it to $ 33 per share Yahoo (against $ 31 originally announced on January 31), making a total of 47.5 billion dollars (30.8 billion euros), but the Internet portal called for $ 37 per share, "said Microsoft CEO Steve Ballmer.
"Despite our best efforts, including raising our offer of approximately five billion dollars, Yahoo! Did not show its willingness to accept our offer," he wrote in a letter to his counterpart Jerry Yang.
"After careful consideration, we believe that the financial requirements of Yahoo is not reasonable for us and it is in the best interest of shareholders, employees and other holders of shares of Microsoft to withdraw our proposal," said Ballmer.
"I hope for Yang will be able to announce soon a strategic alternative whatsoever to explain why 31 dollars have not been enough," said David Garrity, an analyst with Dinosaur Research.
"The idea of prosecutorial authority will itch a certain part of the basis of shareholders Monday morning," he adds.
FRONDE SCHOLARSHIP AND CORRECTION FOR POSSIBLE YAHOO
The action Yahoo had closed Friday up strongly by 6.9% to 28.67 dollars in the hope of an imminent rapprochement between the two giants.
Laura Martin, analyst at Soleil Securities, found that the internet group claimed a price too high and predicted that its title would fall Monday the resumption of trading on the Nasdaq.
"Thirty-three dollars was a correct price in the context of economic slowdown and negative trends in the advertising market," she said.
Yahoo said in a statement Saturday, after Microsoft had renounced his project, he had been held to its position that the software giant did not propose enough for the group, and many of its shareholders approved its determination .
"Now that we are no longer distracted by the unsolicited offer from Microsoft, we will be able to concentrate all our energies to achieve the transition the largest in our history," said Jerry Yang in the press release.
A source close to the case has quickly added that the priority for Yahoo remained to examine strategic alternatives, and that the group was still in discussion with other potential partners.
Yahoo does not seek to tender, said the source, but the board is open to the idea of considering options that could maximize shareholder value, without further details.
The internet has already discussed a possible rapprochement with the AOL Internet division of media giant Time Warner and tested the idea of an advertising partnership with Google, its major competitor, to include search functionality latter's its own portal.
Yahoo had always rejected the proposal by Microsoft to 31 dollars per share, considering that the sub-evaluated, but discussions between the two groups had accelerated in recent hours, according to sources close to the case.
Microsoft had set a deadline for acceptance of its offer but the date had expired last Saturday without an agreement is reached.
Ballmer added that the quest by Yahoo of an alliance with Google in advertising linked to search engines made "undesirable" acquisition of the portal by his group.
Microsoft wanted to acquire Yahoo effect to reinforce its strengths in its battle with Google, the first global search engine, which also works on flowerbeds group Redmond developing its own applications based on the net.
Last Thursday, Steve Ballmer had indicated that his group had to decide between "three main options." Either Microsoft threw in the towel, or it was his offer and reached an amicable settlement, it is addressed directly to shareholders Yahoo via a hostile takeover.
In a letter to its employees, Ballmer had said for his part convinced that Microsoft could achieve its objectives without Yahoo, although he acknowledges, the acquisition group would have "stepped up (its) ability to execute (its) strategy in advertising and online services.
by erectusplus at 9:56 AM |
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