Yahoo! rejects Microsoft's latest move

Yahoo! has issued a further rejection of Microsoft’s $42bn approach describing its threat to take its offer direct to shareholders as "counterproductive" and inconsistent with its claim to want a friendly transaction, according to a report on the website of Financial Times.

The letter from Yahoo’s board to Steve Ballmer, chief executive of Microsoft, was released on Monday morning after the weekend publication of a letter from Mr Ballmer signalling the software group’s impatience at the lack of progress since it made its approach public on January 31.

The directors restated their argument of February 11 that Microsoft’s terms failed to reflect Yahoo’s value adding that the decrease in Microsoft’s stock price had made the proposal worth "significantly" less than when it was announced.

"Contrary to statements in your letter, stockholders representing a significant portion of our outstanding shares have indicated to us that your proposal substantially undervalues Yahoo!," the directors added.