Acquisitions

Yahoo Inc. rejected Microsoft Corp.'s takeover bid on Monday. Now confused investors guess what will be the next move. This step was not a big surprise because intention of Yahoo was disclosed over the weekend. Yahoo wanted to know how much is Microsoft willing to pay. This offer was 44.6 billion dollars, 31 dollars per share. After the prize of Microsoft has been brought on light, the cash-and stock deal dropped to 40 billion dollars or 28.91 dollars per share. Yahoo did not plan to raise antitrust concerns. The target is to make a value for stockholders as high as possible. That's why the board of directors is evaluating all the strategic options all the time. Microsoft doesn't give over. It thinks that this business should be figured out promptly and that its offer is in the best interests of all parties. But Yahoo has more alternatives. One of them is to join with Google. Last year Google paid nearly 5 billion dollars in marketing commissions to thousands of Web sites. Another possibility is a merge with AOL of Time Warner Inc. It is the famous Internet property. Anyway investors thought bid of Microsoft is the best. Purposeless situation brought to Microsoft decrease of value of its shares. They dropped 35 cents and finish at 28.21 dollars. Opposite effect was showed on the side of Yahoo. Its shares increased 67 cents and closed at 29.87 dollars. Analysts think the offer of Microsoft will be higher because Yahoo needs to finish widening position of Google on the advertising and online search market.

by Jana Passova for PocketNews (http://pocketnews.tv)

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