Microsoft to persist with takeover bid despite Yahoo's refusal

www.chinaview.cn 2008-02-12 11:05:21

LOS ANGELES, Feb. 12 (Xinhua) --

Microsoft said Monday that it would continue its efforts to take over Internet search engine and web portal giant Yahoo although its former acquisition offer was turned down.

The software giant didn't say what steps it would take, but called its former offer price "full and fair."

"It is unfortunate that Yahoo has not embraced our full and fair proposal to combine our companies," said a Microsoft statement. "Based on conversations with shareholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties."

Yahoo announced earlier in the day that its board of directors has decided to reject Microsoft's 44.6-billion-dollar bid, arguing the offer "substantially undervalues" the Internet giant's worth.

Microsoft's proposal is "not in the best interests of Yahoo and our stockholders," said the company's board of directors in a statement.

Microsoft said investors, consumers and advertisers would benefit from the two companies' combination, which would create a more formidable competitor to Google in the Internet search and online advertising markets.

It is not clear whether Microsoft would raise its offer price. Industry analysts said Microsoft could either raise its offer or take the original offer directly to Yahoo's shareholders.

Microsoft's effort to buy Yahoo is seen widely as the software giant's latest attempt to challenge Google's dominance of the lucrative online search and advertising markets. The deal would be the largest in Microsoft's 33-year history.

Having been overtaken by Google as the No. 1 search engine, Yahoo is also under pressure from the increasing popularity of social networking websites such as Myspace and Facebook.

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