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THURSDAY APRIL 24
You Do Not Snub Microsoft; Microsoft Snubs You Stamping its little foot (possibly) Microsoft makes like Air France earlier this week (when put off by Alitalia) revealing a glimpse of sour grapes. Issuing fiery oratory from Milan, Steve Ballmer held the line on the price being offered for Yahoo and said Microsoft is "prepared to move forward alone without Yahoo.” Is this just the usual dealmaking bombast – or could it be an indication that Microsoft is truly reconsidering? April 2008Steve Ballmer says Microsoft Corp. is willing to go it alone rather than buy Yahoo Inc. And he has a reason besides opposition from the Internet company: skepticism among his own employees. Since Microsoft made its bid in late January, Microsoft's chief executive and other executives have circled the ranks of Yahoo shareholders and held informal talks with Yahoo executives in the hope that friendly talks can coax Yahoo into their arms. But the longer that process takes, the more Microsoft's rank-and-file workers and executives weigh the consequences of what would be Microsoft's largest acquisition ever -- and many are against it, say Microsoft employees and other people familiar with the company. A Microsoft spokesman declined to comment. Employee sentiment and other concerns about the deal may not be strong enough to force Microsoft to reconsider its goal to buy Yahoo. But Mr. Ballmer, speaking in Milan Wednesday, appeared to be hedging his bets. He said that the $44.6 billion value of Microsoft's original bid for the company "is a lot of money." He added that Microsoft is "prepared to move forward alone without Yahoo." Such rhetoric, of course, is not uncommon as a negotiating tactic by a company hoping to hold the line on a deal price. But some Microsoft insiders say internal opposition to the Yahoo deal could limit the willingness of Microsoft to raise its Yahoo bid. In Milan, Mr. Ballmer said Microsoft has no plans to boost a cash-and-stock offer for Yahoo that stood at $31 a share when announced Jan. 31. It is now valued at around $30.45 because of a subsequent fall in Microsoft's share price. Microsoft is expected to give more direction on its Yahoo plans in coming days. Microsoft Chief Financial Officer Chris Liddell will have a chance to give details during the company's quarterly earnings call with analysts Thursday. Meanwhile, Saturday is a deadline Microsoft imposed on Yahoo on April 5 to enter friendly talks or face a hostile takeover. The two sides have talked, though haven't had any formal negotiations around price, say people familiar with the matter. Yahoo says Microsoft's offer undervalues it and some major Yahoo shareholders have suggested they want closer to $35 a share to do a deal.
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