Yahoo investor pleaded with Microsoft to raise its bid of $42 billion in an effort to stay the deal. In addition, the second-largest investor scorned Yahoo's pride, saying that they have few options left for a satisfactory buyout. According to Reuters, Bill Miller, the lead stock-picker for Legg Mason, assessed in a quarterly letter to investors Yahoo's true worth to be $40 per share, $9 more than Microsoft's original bid.
"[Microsoft] will need to enhance its offer if it wants to complete a deal," wrote Miller. "It will be hard for [Yahoo] to come up with alternatives that deliver more value than [Microsoft] will ultimately be willing to pay," Miller wrote. "We think this deal is a strategic imperative for [Microsoft] and that [Yahoo] is in a tough spot if it wishes to remain independent."
Legg Mason Capital Management holds 80 million shares of Yahoo, which is just over 6-percent of the company. Legg Mason is second only to Capital Research and Management, which owns 11-percent.
