Shareholder Support For Yahoo!

One of Yahoo!'s largest shareholders, Legg Mason (almost 7%, 2nd largest holding) said it is prepared to support Yahoo! in its effort to remain independent ........ should Microsoft lower its offer. Legg Mason portfolio manager Bill Miller goes on to say Microsoft blundered by threatening to offer a lower price, but that if Microsoft were to offer even $1 dollar more per share over the original $31, it would go a long way to appeasing shareholders. Translation: Please offer more, we have no other options. In fact, he does goes on to say that Yahoo! does not really have any other good options, but also that Microsoft needs the deal to happen. I still expect a slightly higher bid, and agreement. Of course, with Ballmer, you never really know.

In related news, analysts from Piper Jaffray Piper mentioned that their survey of 20 institutional Yahoo investors showed that a majority favor the current deal to no deal.

Tickers: MSFT, YHOO