Yahoo investors may not want bigger Microsoft bid
Seattle PI | at | by Mike
Yahoo Inc.'s biggest shareholders may not demand that Microsoft raise its $44.6 billion takeover offer because there is more to lose from a decline in their holdings of the buyer, Friedman Billings Ramsey Group Inc. said.
Eighteen of Yahoo's top 25 outside holders own even more Microsoft stock, FBR analysts including David Hilal said in a research note Wednesday. A $3 a share, or $4 billion, increase in the offer probably would reduce the value of each Microsoft share by at least 68 cents, enough to cancel those investors' gains from Yahoo, the analysts wrote.