Yahoo has three weeks to acceptMicrosoft's £22.3bn bidor face a
hostile takeover and a management cull.
In a letter to Yahoo's board, Microsoft's chief executive, Steve
Ballmer, threatened to take its offer direct to shareholders in
three weeks - possibly at a lower rate - if Yahoo's board fails to
respond.
"If we [Microsoft] have not concluded an agreement within the
next three weeks, we will be compelled to take our case directly to
your shareholders, including the initiation of a proxy contest to
elect an alternative slate of directors for the Yahoo board."
Microsoft made its offer on the 31 January but
Yahoo rejected the offer as undervaluing the business. The bid
is seen as part of
Microsoft's move to develop its range of online software
products. The deadline for the offer is 26 April.
