Yahoo Faces Another Lawsuit Over Microsoft Bid
Posted: Monday, March 10th, 2008 at 4:02 pm
Internet giant Yahoo is being sued by another group of shareholders after refusing to merge with Microsoft Corp under a multi-billion dollar proposed deal. Yahoo is being accused of acting against the interests of the shareholders in the lawsuit, filed by two Detroit public pension funds.
The lawsuit stated: “Yahoo’s directors cannot ‘just say no’ indefinitely to legitimate acquisition offers when the effect of that decision is to deny shareholder choice … especially where, as here, the bid may yet be improved through negotiations.”
According to shareholders Yahoo board members put their bias against Microsoft ahead of looking out for shareholder’s interest. Reports claim that board members have even been looking at alternatives to a merger with Microsoft. The lawsuit stated: “The Yahoo board, in its desperation to pull off a ‘just say no to Microsoft’ defense, is fighting off a non-coercive 62% premium offer by pursuing all manner of value-destructive third party deals.”
It goes on to state: “The Yahoo board members have placed personal distaste for Microsoft ahead of shareholder welfare. The Yahoo board’s supposed commitment to ‘consider’ Microsoft’s proposal appears to have been a hollow promise.”
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