Report: Yahoo, Microsoft execs in talks

Surprise, surprise. Execs from Yahoo Inc. and Microsoft Corp. met to talk about the possibility of a deal for the first time since Microsoft's $44.6 billion offer was rejected, according to reports Friday.
The Wall Street Journal, citing people familiar with the matter, said the meeting was mainly so Redmond, Wash.-based Microsoft could outline its plan for the combined company.

No bankers were present, the Journal reported.

Sunnyvale-based Yahoo shares rose on the news, going up to $27.96 in morning trading after closing at $26.79.In February Yahoo was hit with seven shareholder lawsuits claiming that the Internet company mishandled its response to the takeover bid.

Four suits were filed in Santa Clara County Superior Court and three in Delaware by pension funds that own Yahoo stock.

Yahoo said earlier that the offer undervalues the company.

Microsoft, in response, began readying a proxy fight that could unseat the 10-member board, including Jerry Yang, co-founder and chief executive.

http://www.bizjournals.com/sanjose/stories/2008/03/10/daily78.html?jst=b_ln_hl