Yahoo's board will reject Microsoft's $44.6 billion bid to acquire the company because it "massively undervalues" Yahoo, the Wall Street Journal reports. The board will spell out its objections in a letter to Microsoft on Monday. Yahoo says the $31-per-share offer isn't high enough and worries about entering a deal that could eventually be overturned by regulators.
The move signals that Yahoo is preparing for a long takeover battle, the Journal notes. It quotes an unnamed source as saying that Yahoo probably wouldn't accept any per-share offer under $40. That would require Microsoft to raise its bid by about $12 billion, an uncertain prospect.