"Hours after Yahoo officially rejected Microsoft's takeover offer on Monday, calling it too low, Microsoft described Yahoo's response as "unfortunate" and said its own proposal was "full and fair."
Microsoft's statement suggests that, at least for now, the company is not willing to raise its price. Microsoft also indicated anew that it was ready for a fight, repeating earlier statements that it might consider "all necessary steps" to ensure the deal is completed.
Experts said Microsoft could ratchet up pressure on Yahoo's board by taking its offer directly to shareholders and waging a proxy fight to oust Yahoo's directors; it has until March 13 to nominate a new slate of directors."
"Microsoft suggested that Yahoo shareholders it had polled viewed the deal favorably. "Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties," Microsoft said. Many Yahoo shareholders are also Microsoft shareholders and might not necessarily favor a higher offer.
In a letter to employees explaining the company's position on Monday, Jerry Yang, Yahoo's chief executive, said they deserved credit for Yahoo's success.
But some Yahoo employees will soon find out that their work is no longer needed. The company said last month that it would lay off about 1,000 employees by mid-February, though some would be allowed to apply for other jobs in the company. A person close to Yahoo said the layoffs could be announced as early as Tuesday."