Yahoo not opposed to Microsoft takeover bid

Positive news for Microsoft and its efforts to acquire internet company Yahoo, after the board of the web portal operator acknowledged that it is happy to be acquired by the Windows and Office maker - but only at the right price.

And it would seem that the right price is definitely not the £44.6 billion (£22.3 billion) bid tabled by Microsoft at the beginning of February.

In a letter to Microsoft chief executive Steve Ballmer, the Yahoo board stated that its objection is financial, not cultural.

"We have continued to make clear that we are not opposed to a transaction with Microsoft if it is in the best interests of our stockholders," the letter said. "Our position is simply that any transaction must be at a value that fully reflects the value of Yahoo, including any strategic benefits to Microsoft, and on terms that provide certainty to our stockholders."

Yahoo is responding to a three-week deadline issued by Ballmer in a letter to Yahoo on Saturday for Yahoo to agree to Microsoft's $31 a share cash-and-stock offer or risk seeing the bid lowered.

"Our board has been actively and expeditiously exploring our strategic alternatives to maximize stockholder value, a process which is ongoing," Yahoo's board said earlier today. "All of these actions have been driven by our overarching commitment to maximise stockholder value.

"Our board's view of your proposal has not changed. We continue to believe that your proposal is not in the best interests of Yahoo and our stockholders."

Yahoo shareholders and analysts say Yahoo's best options are to find an ally to help demonstrate Yahoo is worth more as an independent player, or surprise the market with a strong show in its quarterly results.

The consensus on Wall Street is that no "white knight" will emerge to whisk Yahoo away from Microsoft.

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