Now that Yahoo (NSDQ: YHOO) is expected to reject Microsoft’s (NSDQ: MSFT) $31 a share bid in an official letter to the company on Monday, what options does Microsoft have? We have documented some of them before, but a quick overview of them (NYT does a good job here):
— Raising the bid: MSFT has indicated it could go up to $35 a share, even though Yahoo might be looking towards the $40 mark. If MSFT was to consider the $40 a share mark, the total bid would rise from $44.6 billion to about $56.6 billion.
— Convincing biggest shareholders: Hedge funds, biggest buyers of Yahoo