Yahoo lukewarm on Microsoft bid ...
AOL 'contemplates Yahoo approach' ...
Shares in Yahoo jumped 3% amid expectation Microsoft is preparing to launch a hostile bid for the company.
Microsoft may increase the offer for the internet firm it made in February, which was then worth $44.6bn (Ј22.4bn).
The software giant wants to do a deal to be able to compete with Google, which dominates the lucrative market for internet advertising.
Yahoo rejected the cash and share offer as inadequate, and has since ignored a Microsoft-set deal deadline.
Microsoft's bid was originally worth $31 a share, but the value of the offer has since fallen as the Microsoft share price has declined.
At 1640 BST, Microsoft's shares were practically unchanged at $29.38. Meanwhile, Yahoo's shares were trading at $27.79.
'Negotiating tactics'
Microsoft had given its rival until 26 April to accept its bid, but it passed without a response from Yahoo.
The Microsoft board met this week to discuss its next move, but the meeting ended without an agreement, according to reports.
There are suggestions Microsoft will up its bid to around $33 per share, but it is understood that Yahoo shareholders are hoping for $35 to $37 per share.
Before Microsoft's deadline, its chief executive Steve Ballmer threatened to lower the offer or to walk away from the deal.
But some analysts dismissed this as negotiating tactics.
(BBC)
<< Back