Yahoo Inc on Monday rejected Microsoft Corp’s unsolicited takeover bid, currently valued at $42 billion, as too low, saying its board had unanimously concluded it was not in the best interests of shareholders.
In a statement, Yahoo said the offer “substantially undervalues” the company.
Microsoft made the half-stock, half-cash offer on February 1.
It was originally worth $44.6 billion or $31 per share — a 62 per cent premium to Yahoo’s stock price. Since then, Microsoft shares have fallen and the deal is now worth $41.8 billion.
If completed, a merger of Microsoft and Yahoo would be the world’s largest of two computer technology companies and would create a formidable rival to Internet search and advertising leader Google Inc.
