Yahoo!'s (NASDAQ: YHOO) board will presently reject a $31 a share buy-out bid from Microsoft (NASDAQ: MSFT), according to The Wall Street Journal. The group thinks the offer is undervalued and will not look at any offer under $40 a share.
For the record, Yahoo!'s shares have been above $40 only very briefly in the last five years. That was in late 2005 and early 2006. Only five weeks ago, the traded below $19. The question becomes whether there is any case to be made that the Yahoo! board is acting as proper fiduciaries. The answer is almost certainly "no."
