Yahoo Punts Microsoft/Icahn Offer…..Vents Spleen Too

Yahoo announced that late on Saturday night that it rejected a joint-buyout proposal that Microsoft and investor activist Carl Icahn offered the night before, which called for a “complex restructuring” and sale of Yahoo’s search business to Microsoft:

“The proposal was made on Friday evening and Yahoo! was given less than 24 hours to accept the proposal, the fundamental terms of which Microsoft and Mr. Icahn made clear they were unwilling to negotiate. After reviewing the proposal with its legal and financial advisers, Yahoo!’s Board of Directors determined that accepting the proposal is not in the best interests of its stockholders.”

Oh yeah, Yahoo Chairman Roy Bostock took some shots at Microsoft and Carl Icahn:

“This odd and opportunistic alliance of Microsoft and Carl Icahn has anything but the interests of Yahoo!’s stockholders in mind. Clearly, Microsoft, having failed to advance in search, is aligning with the short-term objectives of Mr. Icahn to coerce Yahoo! into selling its core strategic search assets on terms that are highly advantageous to Microsoft, but disadvantageous to Yahoo! stockholders. Yahoo’s Board of Directors will not allow that to happen. Yahoo!’s Board remains open to any transaction that delivers full value to our stockholders – we just do not believe such a transaction should be dictated by Microsoft and a single short-term investor.”

Ouch. There’s more of that in the press release I linked to. Take a read for yourself and see how ticked off the Yahoo gang are.

I expect a response from Carl Icahn at any moment. That should be “entertaining.”

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