As reported, Yahoo (NSDQ: YHOO) has responded to Microsoft's (NSDQ: MSFT) weekend letter. The line that tell you everything you need to know: "Our Board's view of your proposal has not changed." The company is digging in, going back to many of the same points that it has made before. The offer is too low, but it's willing to talk if Microsoft is flexible. Some key highlights:
-- "...our Board has been actively and expeditiously exploring our strategic alternatives to maximize stockholder value, a process which is ongoing. All of these actions have been driven by our overarching commitment to maximize stockholder value."
-- "Your comment that we have refused to enter into negotiations to conclude an agreement are particularly curious given we have already rejected your initial proposal, nominally $31 per share at the time, for substantially undervaluing Yahoo! and your suggestions in your letter and the media that you are considering lowering the value of your proposal. Moreover, Steve, you personally attended two of these meetings and could have advanced discussions in any way you saw fit." Note, this is the first time it's been confirmed that Ballmer attended meetings between the companies.
-- "As you know, we recently reaffirmed our Q1 and full year guidance, which is a testament to our ability to perform in line with our expectations despite the current economic environment. In addition, our three-year financial and strategic plan which we have made public demonstrates significant potential upside not previously communicated to the financial markets."
-- "We consider your threat to commence an unsolicited offer and proxy contest to displace our independent Board members to be counterproductive and inconsistent with your stated objective of a friendly transaction."
More to come Release.
By Joseph Weisenthal