Barring last-minute, behind-the-scenes maneuverings, the stalemate between Microsoft Corp. (NASDAQ: MSFT) and Yahoo! Inc. (NASDAQ: YHOO) is expected to persist through the weekend, when Microsoft's three-week deadline to reach an amicable agreement on an acquisition expires.
Microsoft on April 5 said if an agreement with Yahoo! was not concluded by April 26, it would take its case directly to Yahoo! shareholders and initiate a proxy contest for seats on the Sunnyvale, Calif., company's board of directors. Microsoft this week leaked names of its candidates to The Wall Street Journal, which also reported that employees at the Redmond, Wash., company have expressed skepticism about the deal. In addition, the New York Post, citing unnamed sources, reported that Microsoft CEO Steven Ballmer could reach out to Yahoo! and say it would sweeten its $31 a share, $43 billion offer slightly if Yahoo! agrees to formal deal discussions.
"Obviously with all this being leaked it's going down to the wire," said Jeffrey Lindsay, an analyst with Sanford C. Bernstein & Co. "Microsoft's really trying to persuade Yahoo! to negotiate.
