Yahoo Faces Lawsuits, Rough Ride on Wall Street

Turning down Microsoft's sweetened bid may cost company in coming weeks
By Jim O'Neill,  Newser User
Posted May 5, 2008 6:17 AM CDT
Microsoft CEO Steve Ballmer.   (AP Photo/Paul Sakuma)
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(Newser) – At least seven lawsuits already have been filed against Yahoo for its handling of Microsoft’s bid to acquire the Internet portal and lawyers say the company is likely to face more, reports Reuters. Microsoft withdrew a $33-per-share offer Saturday—a 70% premium above Yahoo’s share price three months ago when Microsoft launched its bid—after Yahoo demanded $37.

One lawyer lambasted Yahoo CEO and founder Jerry Yang, saying he blocked the bid for personal reasons. But at least one expert says Yahoo needn’t worry about the suits because Microsoft withdrew its offer, and never launched a hostile takeover bid. The battle has inflated Yahoo’s stock, which some say could plunge as much as 30% today.