subscribe: Daily Newsletter

 

Microsoft won’t back down on Yahoo

0 comments

Microsoft has rolled up its sleeves and will take on Yahoo in a proxy battle for its board of directors if the search company doesn't start negotiating about a sale. 

A tough statement yesterdat from Microsoft chairman Bill Gates led the charge and then reports emerged that the software giant could start a proxy battle this week.
The way a proxy battle would work is that Microsoft would nominate its own directors for Yahoo's board. If enough shareholders like the sound of Microsoft's R31.00 a share offer, they could vote the opposition board in.
Yahoo's board rejected the R31.00 offer, claiming the company was worth more than that. However, shareholders seem to like the deal and Yahoo's stock has risen 55% since the offer was made.
If Microsoft wants to take the proxy battle further it will demand a list of Yahoo shareholders and contact them individually. The Yahoo shareholders meeting will be held in May, and would determine the outcome of such a move.