HT Image
HT Image

Yahoo investors may back Microsoft Corp

Financial risk management analysis company RiskMetrics Group found that close to 90 per cent of Yahoo’s institutional shareholders have a cross-holding in Microsoft.
By HT Correspondent | Reuters, Seattle
UPDATED ON FEB 17, 2008 10:31 PM IST

Most of Yahoo Inc’s top institutional shareholders may be more interested in making sure Microsoft Corp does not overpay for the Web pioneer, because they have more money invested in the bigger software maker, a research report said on Friday.

Financial risk management analysis company RiskMetrics Group found that close to 90 per cent of Yahoo’s institutional shareholders have a cross-holding in Microsoft, including most of the top 20—and generally have significantly more money invested in Microsoft.

The two companies are at a stand-off in Microsoft’s $41.7 billion unsolicited bid to acquire Yahoo.

Microsoft has offered to buy Yahoo for $31 a share in cash and stock, a bid which Yahoo’s board rejected, saying it undervalued the company.

Microsoft countered by saying that its offer was “full and fair,” but did not say what it planned to do next. Analysts expect Microsoft to sweeten its bid, possibly to $35 a share, to clinch a deal.

Yahoo shares surged on news of the bid, but Microsoft shares have fallen. Shares of Microsoft were down 11 cents to $28.39 in Friday afternoon trading on Nasdaq, down 13 per cent since the offer went public.

Yahoo’s stock was down 40 cents to $29.58, representing about a 2 per cent premium to Microsoft’s half-cash and half-stock offer, which indicates investors are expecting a higher bid.

A shareholder that owns both the target and an acquirer will be more interested in the net benefit of a deal, RiskMetrics said.

Shareholders with more money invested in Microsoft than Yahoo will most likely urge Yahoo not to push its case too hard.

“They may be more concerned with whether Microsoft will get caught up in a ‘deal frenzy’ and suffer the ‘winner’s curse’ by overpaying for Yahoo,” RiskMetrics analysts wrote in an M&A Edge Note.

“We can expect shareholders who own both companies to pressure Yahoo directors to extract a material sweetener from Microsoft (which will help Yahoo directors save face) that isn’t seen to destroy the perceived benefits of the merger, prior to ... ultimately succumbing.”

Earlier this week, Yahoo’s second biggest shareholder, Legg Mason, urged Microsoft to raise its offer. In a letter to investors, Bill Miller, the star stock-picker at the US asset manager, estimated that fair value for Yahoo was around $40 per share.

RiskMetrics said this was not a big surprise since Legg Mason is one of three of Yahoo’s top 20 institutional shareholders with significantly more money invested in Yahoo than Microsoft. “Don’t expect to see many of the other top Yahoo shareholders following Bill Miller’s lead,” the report said.

SHARE THIS ARTICLE ON
Close
Punjab CM Captain Amarinder Singh chairing an All Party Meeting on the issue of Central Farmer Legislations and the way forward, at Punjab Bhawan in Chandigarh on Tuesday. (ANI Photo)
Punjab CM Captain Amarinder Singh chairing an All Party Meeting on the issue of Central Farmer Legislations and the way forward, at Punjab Bhawan in Chandigarh on Tuesday. (ANI Photo)

Amarinder Singh announces 50 lakh ex-gratia for kin of Punjab solider

ANI, Ludhiana
PUBLISHED ON FEB 27, 2021 06:35 PM IST
The Junior Commissioned officer is survived by his father, wife and two sons aged 11 and 13 years.
Close
Cockfights are banned but still common in rural areas of Telangana, Andhra Pradesh, Karnataka and Odisha states (AP Photo/Anupam Nath)(AP)
Cockfights are banned but still common in rural areas of Telangana, Andhra Pradesh, Karnataka and Odisha states (AP Photo/Anupam Nath)(AP)

Rooster kills owner with cockfight blade in Telangana

AFP
PUBLISHED ON FEB 27, 2021 06:28 PM IST
The bird had a knife attached to its leg ready to take on an opponent when it inflicted serious injuries to the man's groin as it tried to escape.
Close
Delhi Chief Minister Arvind Kejriwal holds a roadshow in Shalimar Bagh area ahead of byelections in five wards of North MCD and East MCD in New Delhi on Wednesday. (ANI Photo)
Delhi Chief Minister Arvind Kejriwal holds a roadshow in Shalimar Bagh area ahead of byelections in five wards of North MCD and East MCD in New Delhi on Wednesday. (ANI Photo)

Delhi Police Commissioner reviews law, order situation ahead of MCD by-polls

ANI, New Delhi
PUBLISHED ON FEB 27, 2021 06:21 PM IST
Shrivastava directed police personnel to keep a sharp vigil on borders in view of elections and the ongoing farmers' protest.
Close
Odisha reported 86 new Covid-19 cases in 21 districts.(HT Photo)
Odisha reported 86 new Covid-19 cases in 21 districts.(HT Photo)

Odisha modifies home isolation order, logs 86 new Covid-19 cases

PTI
PUBLISHED ON FEB 27, 2021 06:19 PM IST
The week-long home isolation will be mandatory for the people coming by train and flight from five high risk states like Maharashtra, Kerala, Punjab, Madhya Pradesh and Chhattisgarh.
Close
Maharashtra continues to report the highest daily new cases at 8,333. In picture - Covid-19 testing in Mumbai.(HT Photo)
Maharashtra continues to report the highest daily new cases at 8,333. In picture - Covid-19 testing in Mumbai.(HT Photo)

Covid-19 spike: What is restricted where in Maharashtra

By hindustantimes.com | Edited by Shivani, Hindustan Times, New Delhi
PUBLISHED ON FEB 27, 2021 06:16 PM IST
As of Friday evening, Maharashtra has a caseload of 2,138,154 Covid-19 cases. The death toll stood at 52,041.
Close
Bihar Chief Minister Nitish Kumar greets Chief Justice of India Sharad Arvind Bobde; Union Law Minister Ravi Shankar Prasad is also present during the inaugural function of the Shatabdi Bhawan at High Court, in Patna.(ANI)
Bihar Chief Minister Nitish Kumar greets Chief Justice of India Sharad Arvind Bobde; Union Law Minister Ravi Shankar Prasad is also present during the inaugural function of the Shatabdi Bhawan at High Court, in Patna.(ANI)

Comments against judges 'disturbing new trend': Law minister Ravi Shankar Prasad

PTI
PUBLISHED ON FEB 27, 2021 06:10 PM IST
Prasad was addressing a function here organised to mark the inauguration of a new building of the Patna High Court by Chief Justice of India S A Bobde, in presence of Bihar Chief Minister Nitish Kumar, among others.
Close
Maharashtra continues to report the highest daily new cases at 8,333. In picture - Covid-19 testing in Mumbai.(HT Photo)
Maharashtra continues to report the highest daily new cases at 8,333. In picture - Covid-19 testing in Mumbai.(HT Photo)

Six states report surge in daily new Covid-19 cases: Government

ANI, New Delhi
PUBLISHED ON FEB 27, 2021 06:05 PM IST
India's present active caseload now stands at 1.44 percent of the country's total positive cases.
Close
A health worker collects a swab sample for a Covid-19 test.(HT Photo/ Raj K Raj)
A health worker collects a swab sample for a Covid-19 test.(HT Photo/ Raj K Raj)

This is what one dose of Covid-19 vaccine will cost in Gujarat

By hindustantimes.com | Edited by Mallika Soni
PUBLISHED ON FEB 27, 2021 05:59 PM IST
“The price of Covid-19 vaccine in Gujarat will be 250 in private hospitals and it will be provided free of cost in govt hospital across the state,” Patel was quoted as saying by news agency ANI.
Close
Bombay high court and all subordinate courts in Maharashtra, except Pune, had resumed in-person hearings in December after a gap of eight months.
Bombay high court and all subordinate courts in Maharashtra, except Pune, had resumed in-person hearings in December after a gap of eight months.

Bombay High Court refuses to hear case after lawyer removes mask in courtroom

PTI, Mumbai
PUBLISHED ON FEB 27, 2021 05:48 PM IST
  • A single-judge bench of Justice Prithviraj Chavan was on February 22 hearing an appeal matter during which the appellant's advocate removed his mask in the courtroom contrary to guidelines.
Close
Varanasi: Congress leader Priyanka Gandhi speaks on the occasion of Ravidas Jayanti, at Sant Ravidas temple in Varanasi, Saturday, Feb. 27, 2021. (PTI Photo)(PTI02_27_2021_000135B)(PTI)
Varanasi: Congress leader Priyanka Gandhi speaks on the occasion of Ravidas Jayanti, at Sant Ravidas temple in Varanasi, Saturday, Feb. 27, 2021. (PTI Photo)(PTI02_27_2021_000135B)(PTI)

'True religion never divides': Priyanka Gandhi at Varanasi's Ravidas temple

Posted by Prashasti Singh | PTI, Lucknow
PUBLISHED ON FEB 27, 2021 05:36 PM IST
This is the second time in the past two years when the Congress leader has visited the birth place of Sant Shiromani Guru Ravidasji, a Congress release issued in Lucknow said.
Close
The chief minister's tweet comes after a 17-year-old boy was beaten up and stabbed for allegedly opposing three boys who were stalking his sister.(HT photo)
The chief minister's tweet comes after a 17-year-old boy was beaten up and stabbed for allegedly opposing three boys who were stalking his sister.(HT photo)

Kejriwal says Delhi's law and order situation 'in serious turmoil'

By hindustantimes.com | Edited by Arpan Rai, New Delhi
UPDATED ON FEB 27, 2021 05:43 PM IST
Delhi chief minister Arvind Kejriwal on Saturday said in a tweet, "Deeply concerned by the murder of a 8-yr old girl in Khichdipur & attack on a 17-yr old boy in Kalkaji.
Close
The police sub inspector who wa escorting the truck was not in uniform.(Representational Photo)
The police sub inspector who wa escorting the truck was not in uniform.(Representational Photo)

Rogue cop arrested for escorting truck carrying methyl alcohol in dry Bihar

By Ajay Kr Pandey
PUBLISHED ON FEB 27, 2021 05:35 PM IST
  • Muzaffarpur's Senior Superintendent of Police said 4,400 liters of methyl alcohol was seized from the truck.
Close
Chandra Shekhar Azad(File photo)
Chandra Shekhar Azad(File photo)

Chandra Shekhar Azad's 90th death anniv: 'Azad hi rahein hain, azad hi rahenge'

By hindustantimes.com | Edited by Mallika Soni, Hindustan Times, New Delhi
PUBLISHED ON FEB 27, 2021 05:32 PM IST
After single-handedly fighting the police for a while with just a pistol and a few cartridges, Azad shot himself in the head, fulfilling his vow of dying as a free man and not as a British captive on February 27, 1931.
Close
The I&B ministry on Monday issued a public notice asking entities involved in uploading or streaming of news and current affairs through digital media to comply with the directive.(Representational Photo/Bloomberg)
The I&B ministry on Monday issued a public notice asking entities involved in uploading or streaming of news and current affairs through digital media to comply with the directive.(Representational Photo/Bloomberg)

Emergency interim blocking directions by I&B Ministry not new, clarifies govt

ANI
PUBLISHED ON FEB 27, 2021 05:31 PM IST
The government said this provision is exactly the same as being exercised by the Secretary, Ministry of Electronics and Information Technology (MeITY) for the past 11 years under the Information Technology (Procedure and Safeguards for Blocking for Access of Information by Public) Rules, 2009.
Close
Cabinet secretary Rajiv Gauba asked the states to enforce Covid appropriate behaviour and deal firmly with any violations of such norms, to further prevent the spread of the disease.(HT Photo)
Cabinet secretary Rajiv Gauba asked the states to enforce Covid appropriate behaviour and deal firmly with any violations of such norms, to further prevent the spread of the disease.(HT Photo)

As Covid-19 cases rise, Centre asks states to deal Covid-19 violations firmly

By hindustantimes.com | Written by Srivatsan K C, New Delhi
PUBLISHED ON FEB 27, 2021 05:31 PM IST
Cabinet secretary met the chief secretaries of Maharashtra, Punjab, Gujarat, Madhya Pradesh, Chhattisgarh, West Bengal, Telangana and Jammu and Kashmir — states that have been reporting a surge in the active caseload or the number of cases in the past week.
Close
SHARE
Story Saved
OPEN APP