“It is ludicrous to think that our board could accept such a proposal,” Yahoo’s chairman, Roy Bostock, said in a statement. “While this type of erratic and unpredictable behavior is consistent with what we have come to expect from Microsoft, we will not be bludgeoned into a transaction that is not in the best interests of our stockholders.”
Yahoo reiterated that it was open to a sale of the whole company at $33 a share, a price that Microsoft had once offered but in recent weeks has spurned. It also said it would accept a sale of its search business, but on better terms.
Yahoo has entered a search advertising partnership with Google, which it could break by paying a fee.
A spokeswoman for Microsoft declined to comment.