Tuesday, February 05, 2008

Watching markets work - Was Microsoft's offer to buy Yahoo value-destroying for Microsoft shareholders?

A few days ago, I had written about Microsoft's bid for Yahoo, suggesting that this wasn't such a bright idea for shareholders of Microsoft. Maybe it was better for the board of directors of Microsoft to block such empire-building and just pay out the cash to shareholders. The graph above of intra-day stock prices over the last few days (taken from Yahoo finance; click here for the latest data) shows a striking story. (Click on the graph above to see it more clearly). The Microsoft stock price dropped by ~ 10% in response to the takeover bid while the Yahoo stock price went up by ~ 55%.
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2 comments:

  1. Ajay...a non related question...why do you think that the INR NDF carry trade has turned negative from a approximately a 2.3% positive carry last week?

    ReplyDelete

  2. this is really a great achievement.it will help a lot...
    it help to get the investor back in the firm .thanks for such info.

    ReplyDelete

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