gibbergibber - 9:32 am on Feb 26, 2008 (gmt 0)

This isn't about whether a Yahoo/MS deal is a good idea, this is about whether Yahoo acted correctly in failing to consult its shareholders about MS's offer.

Yahoo isn't a private company, they're owned by their shareholders, so it's ultimately up to the shareholders to decide whether this offer is a good idea. If it comes to it, Yahoo's shareholders could vote to sack Yahoo's current management and appoint a new management which is willing to accept MS's offer.

This isn't about greed either, fund managers don't own these shares themselves, they're managing them on behalf of others. As a couple of people noted above, fund managers are legally obligated to try and get as much value from their shares as possible. If a fund manager deviates from that cause, they could be sued themselves.