Options Wonderland

[samaelrocks]

And another one:

http://online.wsj.com/article/SB120916579651346191.html?mod=yahoo_hs&ru=yahoo

Some major Yahoo holders have suggested they wouldn't back Microsoft in a hostile effort if it didn't raise its offer above the $31-a-share value first extended on Jan. 31. Among them is Legg Mason Inc. portfolio manager Bill Miller, who earlier this month said $31 was too low.

If Microsoft were to walk away, Yahoo's share price likely would fall from its level of $26.80, down 50 cents, in 4 p.m. Nasdaq Stock Market composite trading Friday. It was trading at $19.18 before Microsoft's offer, which carried a 62% premium at the time it was announced.

Yahoo could continue to pursue some alternatives, such as a pact to carry search advertising from Google Inc., with which it has been conducting a limited test of such an arrangement. The success of that test so far has played a key role in emboldening some at Yahoo in their continued resistance to Microsoft's overtures.





It's looking more and more like Steve Ballmer needs Yahoo more than Yahoo shareholders need the offer. If Microsoft is going straight to the shareholders, IMO, the offer will be more than $31 but less than $35.