WSJ: YAHOO TO REJECT MICROSOFT OFFER

Lots of news for a Saturday. The Wall Street Journal just posted a story that says Yahoo’s board will spurn Microsoft’s offer because it “massively undervalues” Yahoo and doesn’t take into account the risks involved if regulators nix the deal. Microsoft offered $31 a share — a 62 percent premium at the time of the offer — but the WSJ says a source said the company probably wouldn’t listen to anything under $40 a share. So would Microsoft go hostile? Unlikely, as that would cause “deep resentment” among the rank-and-file engineers, the Journal reports. And Yahoo has taken the “poison pill” provision to help prevent a hostile takeover. (WSJ sub. req.)