Yahoo to Microsoft: Make a better offer

[megri]

NEW YORK (Fortune) -- Yahoo is sending an audacious message to Microsoft: Show me more money.
The Internet giant, looking to fend off a takeover bid by Microsoft, made public on Tuesday a three-year financial plan that, according to at least one observer, values the company at $40 a share, or 40 percent higher than Microsoft's offer.
Among the highlights of Yahoo's 35-page presentation to investors: The company said it is on target to meet its previous forecasts for the first quarter ending March 31 and the full year, and predicted sky-high growth in display advertising. The real headline grabber? Yahoo (YHOO, Fortune 500) estimated that adjusted cash flow will surge 47% a year for the next two years.
All very compelling, of course - and as you would expect from a company looking to maybe shine up its appearances in a buyer's market. Looking to elicit a higher takeover offer, Yahoo has reportedly held deal talks with AOL, a Time Warner (TWX, Fortune 500) unit and Fortune affiliate, News Corp's (NWS, Fortune 500) digital media venture that includes MySpace, and even archrival Google (GOOG, Fortune 500). Tuesday's filing is the first signal from Yahoo that its strategy has shifted from fighting Microsoft to trying to broker a better deal.




http://money.cnn.com/2008/03/18/tech...ion=2008031813