---- Yahoo! Sued for Rejecting Microsoft Takeover Attempt
Marcia - 12:16 am on Feb 23, 2008 (gmt 0)
Two Detroit pension funds sued Yahoo Inc and its board on Friday for rejecting Microsoft Corp's unsolicited $41.2 billion offer in a sign of growing shareholder frustration with the online search and media company.
The funds also feared the board was scheming to prevent a hostile takeover by Microsoft by entering into inferior deals with either News Corp or AOL that would not have to be approved by shareholders, the lawsuit said.
So they're trying to tie Yahoo's hands, essentially trying to prevent them from making any effort to thwart a hostile takeover. So much for providing a "quality user experience," which apparently isn't part of stockholders' long term mentality.