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Investor Proposes Microsoft Buy Yahoo For $22/share

Time: 00:24 EST/05:24 GMT | News Source: InformationWeek | Posted By: Kenneth van Surksum

A small Yahoo Inc investor proposed a new deal Thursday to sell the company to Microsoft Corp for $22 a share, a 74 percent premium to the Web pioneer's current stock price.

Under the proposal by investment fund Mithras Capital, Microsoft would unload Yahoo's Asian assets and non-search businesses, extract $3 billion worth of cost savings and receive $2.8 billion of tax benefits, meaning the software giant would pay $10.3 billion for Yahoo's search business.

Mithras Capital, which owns more than 1.9 million shares, or 0.14 percent, of Yahoo, said in a press release that the proposal allows Microsoft to buy Yahoo's search business for $2 billion less than it offered in July.

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