February 26, 2008

Fund may sue Yahoo over Microsoft offer

When Yahoo turned down the $44.6 billion offer from Microsoft there were some really surprised people around, especially as this offer was well over the closing share price. Yet it was turned and since then they have been trying to find another buyer who can either match the price or preferably better it, AOL have been in the frame, but nothing has really materialised and so the offer from Microsoft is the only one on the table, if it is still an offer that is.

But there are many people who have interest in Yahoo be it through a direct share holding or other investments like pensions, who are very disappointed in fact this has upset two firms so much that they have decided to sue Yahoo for not accepting the offer.

The claim is placed directly in the shoulders of the board of Microsoft who by not accepting the massive offer from Microsoft, the pension funds feel that the Yahoo board is guilty of breaching their duty to shareholders who would have picked up a nice bonus. But the board believe that the company is worth something in the region of $50 billion.

Source [AOL]