The deal between Yahoo and Microsoft is not over completely. Now, some small groups of Yahoo investors are going to be the big players of the deal. One of them is Mithras Capital. It owns more than 1.9 million shares, or equivalent to 0.14% of Yahoo. Mithras Capital has submitted a proposal to Microsoft regarding allowing Microsoft to buy Yahoo’s Search business at $2 billion less. For the materialization, the proposal needs the approval of the majority of Yahoo’s investors and the acceptance of Microsoft.
If materialized, the proposal can offer a whooping premium of 74% to the current stock price of Yahoo. So, definitely a piece of good news for all those who are worried watching the downward trend of Yahoo stocks for last couple of days. The other propositions of this proposal are unloading Asian assets of Yahoo and non-search businesses. If unloading comes in to force, according to the proposal there can be a cost saving worth $3 billion and tax benefits of $2.8 billion.
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