04/09/2008 05:12 am ET Updated May 25, 2011

Microsoft: No Plans To Raise Yahoo Bid (Yet)

Microsoft (MSFT) plans to continue to stand firm on its Yahoo (YHOO) bid, the WSJ says--a report that will likely come as a disappointment to those hoping for a pre-emptive hike. We still expect Microsoft to raise its bid at the eleventh hour, when the companies are already deep in negotiation, but there is no reason to do it before then.

Any time information like this appears in the press, one has to ask why the sources wanted it there, and in this case, Microsoft is obviously using the WSJ to tell Yahoo shareholders that they're not going to get rewarded for playing hard to get. Yahoo shareholders have been pretty patient on the whole, and Microsoft is probably hoping they will now tell Yahoo to get on with it.

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