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Microsoft attack by Yahoo holder
Nick Goodway, Evening Standard9 Apr 2008
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."
