In no uncertain terms, Yahoo has turned down a joint bid from Microsoft and billionaire investor Carl Icahn to take over the company. Under the terms, Microsoft would have acquired the search engine business and Icahn would have got the rest of Yahoo.
Yahoo claims that it was given just 24 hours to consider the offer and there was no time for negotiation, the BBC reports.
In a statement, Roy Bostock, Yahoo’s chairman, said:
"It is ludicrous to think that our board would accept such a proposal. This odd and opportunistic alliance of Microsoft and Carl Icahn has anything but the interests of Yahoo!’s stockholders in mind."
The bid offered $33 a share for Yahoo (up from the $31 Microsoft offered in February, and much higher than the $23.16 at which Yahoo’s stock closed on Friday), but required the immediate removal of the entire board.
But the rejection is hardly the end of things. On August 1 Yahoo will have its annual meeting, where Icahn, who owns 5% of the company’s stock, will try to replace the board. Microsoft has said it will enter into fresh takeover talks if a new board is elected.
