In an attempt to buy more time, Yahoo has extended a deadline for the naming of directors to find a new alternative to Microsoft’s $44.6bn (£22.3bn) buy-out bid. The bid was an unwanted offer for Yahoo, with claims that it undermined and undervalued the firm. The date has been moved from 14th March to an unspecified date, but it will run for another ten days after Yahoo sets a date for its annual meeting which is to take place in July.
Microsoft had taken the action to hire a firm specialised in proxy battles, as a means to communicate their action to remove Yahoo’s board of directors, because of Yahoo rejecting the bid. Yahoo, however, has stated that Microsoft can still have control over naming directors but allowing them to use the extended period for the board to find ‘strategic alternatives’.
The proxy battle will enable Microsoft to appoint the directors who were in favour towards the deal, so that then the shareholders can make a vote in the next Yahoo annual meeting. Yahoo, who has been struggling for a long period, rejected the offer based on feeling undervalued. However, Yahoo’s latest movement proves to be a sign that Yahoo is less favourable to Microsoft.
“In light of the current circumstances, this change removes an imminent deadline,” said Jerry Yang, Chief Executive of Yahoo during a filing sent to the US Securities and Exchange Committees. Yahoo has been using their time to seek links with other major media and internet firms, in hopes to find a deal that will permit more independence to them.
Other firms that have reported to be in talks are Google, AOL and News Corporation. However, experts have predicted that it is unlikely that Yahoo will find an alternative deal that is as lucrative to the shareholders as Microsoft’s bid.
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