Microsoft attack by Yahoo holder - Business - Evening Standard
       

Microsoft attack by Yahoo holder

One of Yahoo's largest shareholders has said that Microsoft has blundered by threatening to go hostile with its $45 billion (£23 billion) takeover bid for the internet giant.

Bill Miller, fund manager at Legg Mason which holds 7% of Yahoo, criticised Microsoft for setting a three-week deadline for Yahoo to accept its $31-a-share offer or face a lower hostile bid.

Miller said that Microsoft would have to sweeten its offer.

He said: "To me, bumping the number up a buck a share would have a big impact psychologically on shareholders."

Yahoo has rejected the bid and said the ultimatum set by Microsoft was "counterproductive".

"The problem is Microsoft blundered with the letter [it sent] this weekend," said Miller.

"Telling the shareholders you're going to take something away from them is not the way to get their support."

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