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Microsoft gives Yahoo three-week deadline

Microsoft has issued Yahoo's board of directors with a three-week deadline in which to accept its takeover offer.

Chief executive of the company, Steve Ballmer, sent a letter on Saturday (April 3rd), addressed to the board, stating that if an agreement had not been concluded within the time period, then Microsoft would be "compelled to take our case directly to your shareholders".

He added that the initial offer of $44.6 billion, made on February 1st, might be reduced.

"The substantial premium reflected in our initial proposal anticipated a friendly transaction with you. If we are forced to take an offer directly to your shareholders, that action will have an undesirable impact on the value of your company from our perspective which will be reflected in the terms of our proposal."

Mr Ballmer added: "Our goal in making such a generous offer was to create the basis for a speedy and ultimately friendly transaction. Despite this, the pace of the last two months has been anything but speedy."

He went on to say that there had been "no meaningful negotiation to conclude an agreement" between the management of both the two companies. ADNFCR-1536-ID-18539353-ADNFCR