Yahoo Buys Time to Delay Proxy Battle

May postpone meeting to pursue talks with Microsoft, AOL
By Jim O'Neill,  Newser User
Posted Mar 5, 2008 9:13 AM CST
A Microsoft Corp. building is shown Monday, Feb. 11, 2008, in Redmond, Wash. Yahoo Inc.'s rejection of Microsoft unsolicited takeover bid Monday left investors guessing Microsoft's next move as Yahoo's...   (Associated Press)
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(Newser) – Yahoo may postpone its annual meeting to delay a proxy battle with Microsoft, reports the New York Times. The move would temporarily fend off a hostile takeover bid by the computer giant, and buy Yahoo some time to weigh its options, including a negotiated deal with Microsoft and a merger or joint venture with Time Warner’s AOL. Microsoft’s bid currently is worth $41.2 billion.

Yahoo must hold a meeting by July 12, enough time for the companies to work a new deal. Yahoo believes Microsoft’s original $44.6 billion bid was low; it’s eroded since as Microsoft’s share price has declined. Yahoo has talked with Google and News Corp, but now appears interested in AOL, a move that Google, which owns 5% of AOL, supports.