Reuters : Microsoft investors growing weary of Yahoo plans
By Andrew Redfern @ 15th February 2008 11:55 am
Reuters, Boston. Money manager Robert Olstein did not mince words when he chided software giant Microsoft Corp for offering $42 billion for Web pioneer Yahoo Inc.“I want Microsoft to say ‘Sayonara Yahoo’ and walk away,” said Olstein, who owns roughly 1 million Microsoft shares. He wrote the company this week to say exactly that.
“Under no circumstance should you raise your price,” he wrote to the Redmond, Washington-based company’s chief financial officer, Christopher Liddell.
Olstein is not alone among Microsoft investors unhappy with the world’s biggest software maker’s unsolicited bid for Yahoo, an offer that has emotions running high on both sides.
Since Microsoft made the offer, its stock is down 11 percent, sinking its market capitalization by some $34 billion. Many on Wall Street expect Microsoft to raise its bid.
Yet some investors balk at the initial price. Skeptics want more detail on how the deal will pay off and are concerned that it would distract management at a time when the company — and investors — were starting to enjoy the success of Windows Vista and the profitability of the Xbox video game franchise.
Other Related Stories That May Be Of Interest:
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