The Wall St. Journal is reporting that Yahooâ€™s Board of Directors will issue a statement on Monday rejecting Microsoftâ€™s $31/share offer. According to the Journal, the Board feels the bid is far below the true value of Yahoo and wants Microsoft to sweeten the offer by at least $9/share.
The source also said that the Board believes Microsoft is wary of pushing the take-over bid much further for fear of alienating its own shareholders, Yahoo employees, or government regulators.
Observers also expect Yahoo to issue a rebuilding plan to satisfy its investors as the company moves to protect its independence. The Board was said to be considering other options last week, including a paid advertising deal with Google that could potentially increase the monetization of Yahoo ads by several cents per click.
If Yahooâ€™s Board rejects the offer, Microsoft will be forced to either immediately up the offer or prepare for a difficult fight to oust current Board members at the next annual general meeting.