Unfortunate, says MS on Yahoo's refusal

REDMOND, USA: Microsoft Corp. today reacted to Yahoo’s decision to rebuff its acquisition proposal, terming the decision as unfortunate.

“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,” announced Microsoft in a statement.

“We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market,” the statement added.

Microsoft reiterated that the combination with Yahoo will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.

“The Yahoo response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo’s shareholders are provided with the opportunity to realize the value inherent in our proposal.”

Experts believe that the software giant would come up with a fresh and increased bid to woo Yahoo.

Microsoft had announced the proposal to acquire Yahoo for $44.6 billion on February 1.