Following the rejection of a takeover bid for Yahoo!, Microsoft could be planning nastier tricks to secure the acquisition of the search engine company, according to a report.
The Tech.co.uk website has cited a recent article in the New York Times, in which it is noted that Microsoft was expected to up the ante to stiffen its bid to get its hand on Yahoo!, but what may not have been expected following the rejection of the 67 per cent premium stock offer would be a move to infiltrate the Yahoo! board.
The website states that although Microsoft’s bid may not have done enough to impress with its valuation of the search engine company’s stock, the New York Times’ assertion that the company is lining up candidates to appear on the board of directors could be seen as Microsoft’s fall-back strategy.
It is suggested by the newspaper that Microsoft will make plans to gain institutional investors’ support and this could also include Yahoo!’s other major shareholders.
The newspaper has also suggested that the Yahoo! "poison pill" clause in its corporate charter, which states that any existing shareholder retains the right to acquire additional shares if outside investors obtain over 15 per cent of outstanding shares, could "dilute" any future control that can be held over the company.
In a further turn of events, techradar.com states that Yahoo! has approached News Corp chief executive officer (CEO) and media tycoon Rupert Murdoch. The website states that reports have noted meetings between Murdoch and Yahoo! CEO Jerry Yang that are thought to involve plans to stave off further advances from Microsoft.
The site adds that although the source of the reports was unable to discuss the matter at length, the prospect of a News Corp / Yahoo! marriage would be an unexpected move for the company and suggests that the search engine is looking for anyone who is not Microsoft at this time.