Yay! I hope it never happens
Microsoft Bid for Yahoo Drops To $29.50 a Share
Henry Blodget | February 6, 200812:17 AM
As Yahoo waits in vain for other bidders or deal alternatives to emerge, the dissatisfaction of Microsoft investors with the Yahoo bid has reduced the value of Microsoft's offer to $29.50 a share.
Why?
- The bid is half-cash / half-stock,
- Microsoft's stock price has dropped about 10% since the offer was announced, and
- the share exchange ratio is fixed at 0.9509 Yahoo shares per Microsoft share.
Microsoft shareholders are already unhappy with the proposal--and they're only going to get more unhappy as the deal gets more expensive. The more unhappy they get, the more the stock will drop, and the more the stock drops, the more expensive the deal will get, and so on..Read More..
Praise Emacs, the deal hopefully wont go forward
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