The Guardian today covered the expected fall in Yahoo's share price, in Yahoo shares feel heat of investor anger over rejected Microsoft. This reports some shareholder complaints and says:
Lawyers said investors could have a case against Yahoo for neglecting its fiduciary duty. Stuart Grant, managing director of law firm Grant & Eisenhofer, said: "I think it's pretty hard for the Yahoo board to turn down $33 when they've shown no ability to turn around their stock price."
But Yahoo shares actually did better than I expected. When I posted yesterday, Yahoo shares down 19% by 1pm, I expected them to go lower. In fact, they went higher. As the graph above shows, they climbed above $24 in US trading, and managed to stay there. They recovered from being about 22% down, and at the end of the day, they only lost about 15%.
They're still higher than they were when Microsoft launched its bid.
The shares are now back where they were about four years ago, which isn't impressive. But then, Microsoft shares haven't done any better, so it's impossible to portray Steve Ballmer as some sort of salvation for Yahoo shareholders - except for pocketing his $33 bid.
