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Yahoo Snubs Microsoft With Delaying Tactic

Expect hostility now that Yahoo on Wednesday decided to extend its deadline for nominating a new board of directors to March 14. The move buys CEO Jerry Yang more time to find an alternative to Microsoft's $40 billion bid for the company.

Many, including Microsoft CEO Steve Ballmer, will view the decision as "a scorched earth attempt to hold off Microsoft as long as possible," while Yahoo's business continues to slow and executives leave droves. Yahoo CEO Jerry Yang told employees the move would allow Yahoo's board to consider its strategic alternatives "without the distraction of a proxy contest."

Not so fast. Nothing is holding Microsoft back from nominating a new board anyway, and sources claim the software giant could go public with a list of nominees as early as next week. Moreover, the Microsoft is considering changing its offer to 100 percent cash as a way to put further pressure on Yahoo's board, and is actively trying to convince Softbank, a top Yahoo shareholder, to support its offer. Sources added that Ballmer is "completely dismayed" that Yahoo would court AOL without engaging in talks with the software giant.

Read the whole story at New York Post »

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