Two US pension funds have sued Yahoo, it was reported recently. The lawsuit, filed by the police and fire retirement system and general retirement system at the Delaware Chancery Court, is a bid overturn the companys position on Microsofts recent unsolicited $44.6 billion bid to purchase the company. It claims Yahoo and its board did not perform its duties and responsibilities towards its shareholders by turning down Microsofts offer.
The lawsuit suggests that Yahoo's attempts to pursue third-party agreements to stave off Microsofts bid were "value-destructive". However, many analysts have suggested the events of the last weeks have been merely posturing for negotiation purposes. Yahoo has not in fact ruled out further negotiations with Microsoft, but it is likely the company would want the bid increased to what it believes is representative of its value, which is in the $40 a share range ($56 billion). Microsofts February 1, 2008 takeover bid was priced at $31 per share.
Although Chairman and Managing Director Rupert Murdoch had initially suggested News Corporation was not interested in purchasing Yahoo, it was reported that since declining Microsofts offer, Yahoo was in discussion with the MySpace owner.