Without a competing suitor to push Microsoft’s unsolicited bid higher, Yahoo is turning to its investors instead, CNET News reports:
“Yahoo, which announced Tuesday its three-year financial plan to investors and cited it would provide more context to its rejection of Microsoft’s initial bid of $31 a share as undervaluing the Internet company, is following a familiar game plan when a better offer isn’t on the hook, say proxy solicitors. ‘Usually executives don’t spend time on a road show when there’s nothing for investors to vote on. Microsoft isn’t asking Yahoo shareholders to exchange their shares, and there’s no Microsoft (opposition slate of) directors to vote on,’ [said one of them]. ‘Usually management’s time is spent finding and working with potential acquirers to extract more value than the current offer, but absent that, they’ll use other bidders.'”
In other words, Yahoo is planning on bringing more investors on board so there’s incentive for Microsoft to raise its bid, giving them another avenue to try along with the possibly-serious AOL takeover idea the New York Times reported on a few weeks ago.
(Image credit: NYT)