Yahoo! sued for not accepting Microsoft bid for acquisition

Yahoo! sued for not accepting Microsoft bid for acquisition

Detroit’s police and fire retirement system and general retirement system have now filed a lawsuit against the internet media giant Yahoo for not accepting the acquisition bid from the software giant Microsoft.

They are claiming that the company did not perform their duties to the shareholders in the company by not accepting the lucrative offer.

The lawsuit further says that the company is now trying to enter into “value-destructive” third-party deals to avoid this acquisition deal.

It added: “Yahoo’s directors cannot ‘just say no’ indefinitely to legitimate acquisition offers. Likewise, Yahoo’s directors cannot pursue transactions that do not require shareholder approval for the primary purpose of making Yahoo unattractive to Microsoft.”

Looks like this could be result of the Microsoft’s attempts to put pressure on the company to accept the bid.