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MicroHoo: Let The Proxy Fight Begin!
The Seattle PI is suggesting that the fight for control of Yahoo’s board, which Microsoft had previously threatened, may begin in earnest this weekend. Conversations with institutional shareholders have already been taking place. The three week deadline set by Steve Ballmer for Yahoo to come to the table will expire this weekend; hence the Seattle PI’s speculation.
A more sympathetic board would presumably vote to accept the offer on the table, which Microsoft CEO Ballmer has so far refused to increase. The hostile takeover effort, if fully commenced, would be expensive and potentially damaging to the future relationship of Microsoft management and Yahoo rank and file.
Microsoft doesn’t want it to come to that. But these tactics are intended to force a reluctant Yahoo to negotiate in earnest with them at the current price, which Yahoo believes is too low.