Hostile Takeover Here We Go

The Microhoo possibility is still very possible after all despite Yahoo’s continuous refusal to Microsoft’s unsolicited bids. Microsoft’s CEO Steve Ballmer sent a new letter to Yahoo’s board of directors dated April 5 this time giving an three weeks for Yahoo to accept their proposal. In the letter an ultimatum was given stating that they are prepared to initiate a hostile takeover in case Yahoo stil doesn’t give a (we can assume positive) response by the time the deadline arrives. Here’s a snippet of the interesting letter.

Dear Members of the Board:

It has now been more than two months since we made our proposal to acquire Yahoo! at a 62% premium to its closing price on January 31, 2008, the day prior to our announcement. Our goal in making such a generous offer was to create the basis for a speedy and ultimately friendly transaction. Despite this, the pace of the last two months has been anything but speedy….

If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo! board. The substantial premium reflected in our initial proposal anticipated a friendly transaction with you. If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal.

It is unfortunate that by choosing not to enter into substantive negotiations with us, you have failed to give due consideration to a transaction that has tremendous benefits for Yahoo!’s shareholders and employees. We think it is critically important not to let this window of opportunity pass.

Sincerely,
Steven A. Ballmer
Chief Executive Office
Microsoft Corp.

Woohoo. So I guess we’re in for a suspenseful 3 weeks. ^_^