|
|
The Times : Yahoo! set to revive merger talks with AOL after rejecting hostile takeover.18th February 2008 10:41 am The Times, London : Yahoo! is seeking to restart merger talks with AOL as a means of defending itself against the $45 billion (£23 billion) hostile bid approach from Microsoft, The Times has learnt. It is understood that Yahoo! and its team of advisers from Goldman Sachs and Lehman Brothers, the US investment banks, have spent the past week evaluating possible tie-ups with media and technology firms that would save it from being swallowed by Microsoft. It is also understood that one option being explored is to restart merger talks with AOL, the online business owned by Time Warner. Tie-ups with groups such as Google or Disney are also being considered. Although Yahoo! and AOL previously failed to join forces because of differences over price, it is hoped that the urgency created by an unwelcome approach from Microsoft and an impending economic downturn will spur the two into new talks. Google, which offered support to Yahoo! when the Microsoft approach was made public, also has a 5 per cent stake in AOL. Jerry Yang, co-founder of Yahoo!, will today tell Wall Street that his board has rejected the software giant’s cash-and-shares proposal because it significantly undervalues the company. It is believed that the Yahoo! board will not even consider starting talks with Microsoft unless the suitor group offers at least $12 billion more, representing a share price value of more than $40. Currently, Microsoft has proposed paying $31 in cash and shares, valuing Yahoo! at just under $45 billion. Microsoft had proposed to pay Yahoo! shareholders up to half in cash and the rest with Microsoft shares. A source close to Yahoo!’s thinking told The Times: “All they [Microsoft] are trying to do is pick off the company on the cheap. They’re trying to steal it. And the board is not going to let that happen. They have gone for a valuation that reflects the five-year low of the stock.” The source added: “It would have to be in the 40s to start talking, and we would have to get over regulatory issues. It would have to be an offer that would give Jerry Yang something to stand on a podium and smile about.” Yahoo! came to its decision at a meeting of its board on Friday night.The rejection may raise eyebrows, since Microsoft’s bid proposal valued Yahoo! at a 62 per cent premium to its closing price the day before the offer was made public on February 1. Such a rejection would suggest that Mr Yang is prepared to argue to shareholders that he is capable of boosting Yahoo!’s share price by at least 62 per cent if the company stays independent. It is understood that today’s announcement will not include any firm talks with other media firms. Leave a ReplyOther Related Stories That May Be Of Interest:
|
Search Categories
|
Hit Search Company Address: Hit Search Limited, Liverpool Innovation Park, Liverpool Digital, Baird House, Liverpool, Merseyside, L7 9NG. Our Telephone Number For Search Engine Optimisation, Search Marketing, Pay Per Click And All Other Enquires is 0845 643 9289. Terms | SEO in Liverpool | PPC in Liverpool | Contacting Hit Search | Online Reputation Management | Online Press Distribution |
Hit Search RSS Feed
No comment so far