Microsoft could play tough in Yahoo! bid

SUNNYVALE, Calif., Feb. 11 (UPI) -- Microsoft Corp. financial chief Christoper P. Liddell signaled Monday that the fight to acquire Yahoo! Inc. may be far from over.

After Yahoo! formally rejected Microsoft's $45 billion purchase offer with a statement, Microsoft issued a statement of its own.

Yahoo!'s decision was "unfortunate," and the software giant would, "pursue all necessary steps to ensure that Yahoo!'s shareholders are provided with the opportunity to realize the value inherent in our proposal," the statement said.

Since the offer was made public Jan. 21, Yahoo!'s shares have undergone a speedy turn-around, The New York Times reported. Shares in the search engine have risen on the backs of short-term-oriented hedge funds, representing investors out for a quick payday, the report said.

Microsoft's offer to buy Yahoo! has not triggered any rival bids, but Microsoft could begin to play tough by meeting directly with Yahoo! shareholders, offering them a direct deal or setting a deadline on any offers. The software giant could also make moves to replace Yahoo! board members with hand-picked nominees of their own.

Or, it could sweeten the deal. Analysts said Microsoft could afford to up the deal from the current $31 per share price to $35 per share.