Microsoft sticks to its bid for Yahoo

SAN FRANCISCO: Microsoft's chief financial officer said that the US software giant is standing by its $44.6 billion bid for Yahoo and the April 26 deadline it gave the struggling Internet pioneer to decide.

"With respect to Yahoo we have been clear speed is of the essence," Chris Liddell said yesterday while discussing a fresh Microsoft earnings report.

"The idea we should increase our bid just because we can afford to is not one that I favour. Unless we make progress with the Yahoo board by this weekend we will explore our alternatives.

Microsoft has given Yahoo's board of directors until April 26 to accept its unsolicited $44.6 billion offer.

Microsoft's options include withdrawing its offer or taking it directly to shareholders in what would be considered a "hostile" proxy battle.

"With or without a Yahoo combination, Microsoft is focused on the online advertising market," Liddell said.

Microsoft made its offer for Yahoo on February 1 in a quest to combine the firms' resources to gain ground on Internet search king Google.

Liddell's comments echo those made by Microsoft chief executive Steve Ballmer during a press event in Morocco earlier in the week.

"We have a strategy for the Internet that we are very excited about," Ballmer said.

"We think we can accelerate our strategy by buying Yahoo and we will pay what makes sense for us to pay for our shareholders."