Yahoo Thumbs Nose at Microsoft, Delays Board Noms

Yahoo has sought to gain the upper hand in its fight against a takeover by Microsoft by extending its March deadline for nominating new directors to its board.

The deadline has been extended from Mar. 14 to 10 days after it sets its date for its annual meeting, writes The New York Post.

Yahoo says the extension will give the board time to explore all strategic alternatives before dealing with proxy challenges, according to BusinessWeek.

But interpretations of the move have varied. Nominating Yahoo directors is likely to be Microsoft’s next move in its takeover bid. Some think the extension is a subtle signal to Microsoft to be patient with Yahoo while the board fulfills its duty of looking at all alternatives before agreeing to a deal. Others see it as an attempt to put the deal off as long as possible in the hopes of a rescue by a third party.

Yahoo’s search for options has included looking at a potential partnership with Google (which analysts say is unlikely), and a scenario in which Yahoo would absorb Time Warner’s AOL internet portal in return for Time Warner taking a stake in Yahoo, the San Jose Mercury News reports.

The move, others say, may force Microsoft’s CEO, Steven Ballmer - who has been trying to keep steady but not overly excessive pressure on Yahoo - to make the takeover “completely hostile,” according to one source who claims to have spoken with executives at both companies.

By law, the annual meeting must be held by mid-July.

ComputerWorld, the San Francisco Chronicle, The New York Times and the Washington Post all weigh in on the topic.