Top Yahoo shareholders could support Microsoft

C|Net | at | by Mike

Yahoo is calling on Microsoft to bump up its buyout bid, but the trouble is a number of the Internet giant's largest investors own shares in both stocks.

And, in a number of cases, Microsoft accounts for a larger slice between the two, which could dampen Yahoo's efforts to generate strong investor momentum in calling for a substantially higher price, according to a report released Friday by RiskMetrics Group.

In effect, it's like asking these large investors to bid against themselves.