Microsoft "frustrated" by Yahoo!

29th April 2008

Yahoo!'s unenthusiastic response to Microsoft's overtures were not expected by the software giant, according to a new report.

Wall Street analyst Scott Kessler, of New York firm Standard & Poor, told the Guardian that the software giant could bring a slate of potential directors to Yahoo! in the next few days.

Three weeks ago, Microsoft imposed a deadline of 07:00 on Sunday April 27th by which Yahoo! had to accept its takeover bid of 31 cents-per-share.

This deadline passed without comment last weekend, and according to Mr Kessler, Microsoft is annoyed.

Mr Kessler told the publication: "Yahoo!'s more critical to Microsoft than people might have thought.

"I think they've been surprised and pretty frustrated by the fact that they've really got nowhere."

However, the report observes that Yahoo! could have a defence against Microsoft in the form of a "poison pill".

The search pioneer in 2001 introduced the mechanism, which would see Yahoo! stock sold at a bargain price if any company acquired a stake of more than 15 per cent.