Oh alright, $33 a share and I’m cutting me own throat
The Wall Street Journal has cited “a person familiar with the situation” (I wonder if his name rhymes with Hoopert Herdock?) as its source for the news that Yahoo! plans to reject Microsoft’s $31 per share offer to buy it.
This person apparently reckons that the Yahoo! board thinks the bid massively undervalues Yahoo!, despite its stock being worth around $19 per share at the time of the offer. The board thinks Microsoft is trying to take advantage of a temporary nadir in Yahoo!’s share price and wants to “steal” it for $30 billion or so. The person says that $40 per share would be the minimum the board would be likely to accept.
Yahoo!’s share price hasn't been above $31 since last November and it was last above $40 was at the start of 2006. The chances are this is the start of a standard phase of negotiation that will end up somewhere in the mid 30s. Still, it might be a laugh while it lasts.
Update - 16:30 11th Feb
As expected the rejection is now official.