Microsoft’s earlier bids rebuffed - SAN FRANCISCO

Microsoft’s earlier bids rebuffed  - SAN FRANCISCO
MIRCOSOFT CEO Steven Ballmer has tried to buy Yahoo before.
SAN FRANCISCO - MR JERRY YANG, the chief executive of Yahoo, was finishing a company board meeting on Thursday when he got a call from Mr Steven Ballmer of Microsoft.
The Microsoft CEO’s message was curt. Microsoft would make public a hostile US$44.6 billion (S$63 billion) offer for Yahoo early on Friday in a move to counter Google’s online pre-eminence.

In a letter dated Jan 31 sent to Mr Yang, Mr Ballmer had talked of the acquisition proposal.

‘We believe this proposal represents a unique opportunity to create significant value for Yahoo’s shareholders and employees and provide greater value and service to customers.’

This was not the first time that Microsoft had proposed to acquire Yahoo. Mr Ballmer met several times in late 2006 and 2007 with Mr Terry Semel, then Yahoo’s chief executive.

But the acquisition attempts were rebuffed by Yahoo, which said the time was not right.

Its announcement last week to lay off more than 1,000 employees, may have triggered this latest bid.

Mr Ballmer is said to have constantly consulted Mr Bill Gates, the Microsoft chairman and a team of experts plotted this week on how much to bid. After Yahoo reported weaker earnings on Tuesday and its stock fell, Microsoft settled on US$31 a share.

If the deal goes through, it would change the Internet world.

But if it turns hostile, Yahoo has a poison pill - in March 2001, Yahoo adopted a ’stockholder rights plan’ under which if anyone buys 15 per cent or more of its stock - aside from an agreed bid - shareholders have the right to buy extra shares.

AP, Reuters, Bloomberg

Source : Straits Times  - 03 Feb 2008

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