Its directors have three weeks to come to the bargaining table or Microsoft will launch a fight to replace themMicrosoft (MSFT) just dropped the bomb on Yahoo (YHOO). Microsoft CEO Steve Ballmer on Apr. 5 sent a letter giving Yahoo's board three weeks before it initiates a proxy fight, including nomination of a new slate of directors likely to approve the deal.
"Microsoft's preference has always been to offer a speedy and friendly transaction," says a person familiar with Microsoft's thinking, reiterating the essence of the letter. "Microsoft has tried to engage, but Yahoo's board has refused to enter into substantive negotiations. There is a difference between a meeting and a negotiation."
The letter comes just hours after several planted leaks by Microsoft, variously claiming that it might drop the bid, lower the bid, or, most recently, would not lower it. Clearly, those leaks (BusinessWeek.com, 4/4/08) ended up confusing people more than they clarified things, so it's not surprising that Microsoft felt the need to go public.
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