Two Detroit pension funds have initiated a class-action lawsuit against Yahoo and its board of directors for trying to rebuke the bid and attempting to third-party deals which the funds say would be "destructive to shareholder value."
"Yahoo's 'Just Say No to Microsoft' approach is a result of resentment by the board, and not any good faith focus on maximizing shareholder value," claimed lawyers from Bernstein Litowitz Berger & Grossman on behalf of Detroit's police and fire retirement system and the city's general retirement system. The firm filed suit for the plaintiffs in Delaware Chancery Court Feb. 21.
Microsoft offered to acquire Yahoo Feb. 1 for $31 per share, a 62 percent premium over Yahoo's Jan. 31 closing price of $19.18. Yahoo rejected the bid Feb. 11 and while its stock price has jumped almost $10, Microsoft's has dipped, lowering the deal value to between $41 and $442 billion.
And with Microsoft assuring job certainty , this deal is as good as done!