Yahoo buys more time to explore takeover options

 

Gallery

By Matthew Sparkes

Posted on 6 Mar 2008 at 08:44

Yahoo has bought more time to explore alternatives to Microsoft's takeover bid, by extending the deadline to nominate directors to its board.

It was expected that Microsoft would nominate its own directors in an attempt to gain power and force the company into a takeover.

The original deadline for shareholders to nominate directors was 14 March, but this will now be moved back by 10 days.

Microsoft attempted to buy Yahoo for $44 billion in February, a 62% premium on the share price, but the offer was rejected for "substantially undervaluing" the company.

Yahoo will use the extra time "to continue to explore all of its strategic alternatives for maximizing value for stockholders without the distraction of a proxy contest," it said in a statement.

Earlier this week it emerged that Yahoo was continuing talks with Time Warner about a potential takeover offer. The deal is expected to include a merger with Time Warner's AOL.