Yahoo Inc.'s top executives Tuesday began a weeklong campaign to convince major shareholders that the Web powerhouse is worth more than the $42 billion Microsoft Corp. is offering in a takeover bid.
Co-founder and Chief Executive Jerry Yang, along with Yahoo's president and chief financial officer, are meeting with their largest shareholders in several cities, arguing that Yahoo can double its cash flow from operations in the next three years. Yahoo also said it would meet earlier financial projections for the current quarter, sending its shares up 7%, or $1.81, to close Tuesday at $27.66.
The longer-term forecast is designed to shore up shareholder support for the company's board, which last month rejected Microsoft's cash and stock bid as inadequate. Analysts said the bid was now worth about $29 a share, down from $31 when it was made, because Microsoft's stock price has declined.
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