Yahoo Plays for Time in Microsoft Struggle

07 March 2008

SUNNY VIEW, California: Yahoo has employed new tactics to delay the day of reckoning with Microsoft's $41.7 billion (€27bn; £20.9bn) takeover bid.

The web portal has changed its bylaws to extend the deadline for nominating outside directors from March 14 to an unspecified date later this year.

The move comes amid reports the agressive software titan planned to field its own posse of directors for the Yahoo board, launching a proxy battle for control of the company.

Comments Anthony Sabino, a business-law professor at St John's University in New York: "Yahoo will use every tactic in the target company's playbook.

"It will delay shareholder meetings, seek injunctions of Microsoft, complain that a Microsoft takeover would be anticompetitive and (would) violate antitrust laws.

"And Microsoft will use every device known to hostile acquirers. Who usually win."

Data sourced from USA; additional content by WARC staff