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The yahoo company asserted that Microsoft substantially undervalues the company. Yahoo once again rejected the bid offered by Microsoft on Monday, calling it too low. The company was actually responding to a letter by Microsoft, stating that it would further lower the buoyant price offer and take it directly to the Yahoo shareholders. Steven Ballmer, Microsoft’s chief executive further strained Yahoo on Saturday through a letter. He warned the Yahoo director’s that Microsoft would begin a proxy war seeking to oust them if a deal between the two is not finalized in the next three weeks.
Microsoft first made an offer to Yahoo on February 1st, 2008. Yahoo still maintained that the offer was not in the interest of the company and its stockholders. Meanwhile Microsoft maintains that it has no reasons to raise the bid, because yahoo doesn’t have competing offers from other companies. Many experts however still believe that, Yahoo would in the future despite a lower bid is likely to agree to takeover by Microsoft. Microsoft maintains that it still prefers a negotiated deal than a proxy war with yahoo.
