Microsoft may get hostile with Yahoo

SEATTLE, April 27 (UPI) -- The offer deadline for Yahoo! by U.S. software giant Microsoft Corp. passed without comment, signaling a possible hostile takeover attempt, executives say.

The two companies engaged in talks in recent weeks to negotiate a friendly acquisition, but Saturday's deadline to reach a deal passed without comment from either party.

Microsoft chief Steve Ballmer said if the deadline passed, the initial bid of a cash-and-stock offer valued at $29.68 per share would diminish significantly, The Wall Street Journal said Sunday.

Yahoo! directors say the offer is too low and suggested a price closer to $35 a share. Yahoo stock prices closed down 1.86 percent at $26.80 in trading Friday on the Nasdaq.

Microsoft officials said they would consider only a modest increase.

"Our bid is quite generous, roughly 80 times earnings," Ballmer said. "If we don't hear from Yahoo!, we've said we'll go to their shareholders."

Microsoft Chief Financial Officer Chris Liddel said Thursday the company could take the offer to shareholders, put pressure on Yahoo!'s board or remove the offer altogether. A decision is expected this week.