Yahoo Rejects Microsoft Bid Again

Yahoo on Monday reiterated its rejection of a takeover offer from Microsoft, again calling it too low.

The company was responding to a letter from Microsoft that threatened to lower the price of its buyout offer and take it directly to Yahoo shareholders.

Although Microsoft’s offer was initially valued at $31 a share, a drop in the price of Microsoft shares has reduced the offer to just more than $29 a share.

Microsoft’s chief executive, Steven A. Ballmer, raised the pressure on Yahoo’s directors on Saturday in a letter warning that Microsoft would begin a proxy fight seeking to oust them if the two companies did not reach a negotiated deal in the next three weeks.

Yahoo! said Ballmer's letter "mischaracterizes the nature of our discussions with you".

Ballmer said Yahoo! had chosen "not to enter into substantive negotiations with us [Yahoo]".

On the contrary Yahoo's Yang said: "We have had constructive conversations together regarding a variety of topics, including integration and regulatory issues... Moreover, Steve, you personally attended two of these meetings and could have advanced discussions in any way you saw fit."

Yahoo!'s letter also said that Microsoft had failed to respond to questions sent 28 March relating to possible anti-trust and other regulatory matters.