Yahoo Set to Reject Microsoft

News reports are stating that Yahoo! is set to reject Microsoft's US$44.6 billion take over bid on the grounds of it being inadequate. The unsolicited offer amounts to US$31 a share, which is 62% more than the current price of Yahoo's shares.

A source close to Yahoo's dealings said the company was unlikely to accept any offer that falls below US$40 a share, a level at which Yahoo's shares were selling two years ago. Neither company has made an official comment on the reports.