Reports: Yahoo To Reject Microsoft Bid

February 11, 2008 8:45 a.m. EST

Sunnyvale, CA (AHN) - Internet company Yahoo is said to be ready to reject Microsoft's $44 billion takeover. Yahoo is said to be seeking $40 per share, rather than the $31 per share the software giant offered last week, reports said over the weekend.

The decision, reached last week, will be announced Monday, according to the AP. Yahoo's board of directors decided Microsoft was undervaluing the Internet portal. Microsoft has the option of either raising its bid or attempting a hostile takeover by appealing directly to Yahoo shareholders.

Microsoft's bid had sparked charges and counter-charges between the software maker and Internet giant Google. Google had, in turn, offered Yahoo a guaranteed revenue stream through a search deal.