Yahoo Will Reject Microsoft's Bid

Yahoo's (YHOO, +0.6%) Board of Directors will reject Microsoft's (MSFT, +1.6%) $31/share unsolicited bid according to a Wall Street Journal report citing unnamed sources. The decision is based on the belief the bid, which totals about $44.6 billion, "massively undervalues" Yahoo. The source said Yahoo is unlikely to consider offer less than $40/share, upping the purchase price by $12 billion.