The Wall Street Journal is reporting that Yahoo! Is going to reject the Microsoft bid of 44.6 billion dollars.
Yahoo feels this bid which amounts to 31 dollars per share not only grossly undervalues the web giant but it also does not take into account the risks Yahoo would be taking by entering into an agreement that regulators could overturn.
One wonders if Yahoo execs know something that Wall Street doesn't as this bid was a significant premium to the company's share price at the time of the offer. Then again this could be posturing in the hopes of getting Microsoft to pony up for more.
The following chart shows the jump in trading volume and share price as the result the unsolicited bid from Microsoft.
Blogged via wireless handheld