The Post’s Peter Lauria reports several juicy Microsoft (MSFT) -Yahoo (YHOO) tidbits in the wake of Yahoo’s delaying the board-nominee deadline yesterday:
- Ballmer furious about this latest rebuff
- Microsoft has a full slate of Yahoo board nominees ready and may file it next week despite the deadline change
- Microsoft is trying to persuade major Yahoo shareholder Softbank (3% owner) to support the deal
- Microsoft is considering going to a 100% cash offer to get Yahoo shareholders even more excited/impatient. This would presumably jack the offer value value back to $31, up from the current $28.87.
Peter also says Team Yahoo is spinning the proxy delay as a way to allow Yahoo to make sure it has fully explored all alternatives before it negotiates with Microsoft. This may be so, but it’s easy to see why Steve Ballmer might be annoyed by this.
If Microsoft does decide to jack its offer back to $31, we wouldn’t be surprised to see it do this in the form of an exchange offer made directly to Yahoo shareholders. Given the current broader market conditions, it also wouldn’t surprise us to see Microsoft put a time deadline on the new offer.
Microsoft would not actually be able to take control of the company this way (because of the poison pill), but if a significant percentage of shareholders voted for the deal, Yahoo’s board would basically have no choice but to cave