SEATTLE (Reuters) - Microsoft Corp said on Monday
that its $44.6 billion unsolicited offer for Yahoo Inc
was generous and it expects Yahoo's board and shareholders to
agree to the buyout quickly.
"We trust the Yahoo board and the Yahoo shareholders will
join with us quickly in deciding to move down an integrated
path," Microsoft Chief Executive Steve Ballmer said in an
annual strategy meeting with analysts.
Microsoft's comments follow a weekend of maneuvering by
Yahoo, which, according to sources familiar with Yahoo's
strategy, is considering a business alliance with Google Inc
to rebuff Microsoft's proposal. It has also received
preliminary contacts from media, technology, telecommunications
and financial companies, another source close to Yahoo said.
At the same meeting, Microsoft Chief Financial Officer
Chris Liddell also said the company may borrow money for the
first time in its history to fund a portion of the 50-50 cash
and stock offer for Yahoo.
"If you look at the cash component ... we could fund most
of that through our cash holdings, but it's likely we're
actually going to borrow for the first time," said Liddell.
"It's going to be a mixture of the cash we have on hand plus
debt."
Liddell said he expects Microsoft's revenue to grow at a
double-digit percentage in the coming fiscal year starting in
July despite a potential U.S. economic slowdown.
Microsoft also announced that its first major update to
Windows Vista was released to manufacturing. Usually, large
organizations wait for the first major update before deploying
a new operating system.
Shares of Microsoft rose 5 cents to $30.50 in early Nasdaq
trading, while Yahoo shares rose 44 cents to $28.82.
(Reporting by Daisuke Wakabayashi and Michele Gershberg in
New York, editing by Dave Zimmerman)
Copyright 2008 Reuters
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