New chess match for Microsoft, Yahoo
So far, so good for Carl Icahn’s big bet that Microsoft (MSFT) and Yahoo (YHOO) will go back to the table. Yahoo shares rose 1% in premarket trading Monday, a day after Microsoft said it has proposed a new deal “that would involve a transaction with Yahoo but not an acquisition of all of Yahoo.” In response, Yahoo reiterated that it doesn’t want to be acquired but remains “open to pursuing any transaction which is in the best interest of our stockholders.”
Icahn last week said he has taken a big stake in Yahoo and sent the company’s board a letter questioning its failure to bring Microsoft’s previous $33-a-share bid to shareholders. Joining Icahn in wagering that Yahoo shares will head higher is hedge fund manager John Paulson, whose Paulson & Co. took a 50 million-share stake in Yahoo in the first quarter. Coming weeks will show whether restive shareholders can apply enough pressure to make Yahoo take action.
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Any deal between Microsoft and Yahoo is a winner for Google. While these guys stay distracted, Google continues to gain market share. If the deal get’s inked it will be a disaster for both Yahoo and Microsoft. <a href=”http://tmccune.blogspot.com/2008/05/google-wins-on-any-microhoo-deal.html” More about that