Yahoo shares tumble in Frankfurt after Microsoft withdraws its takeover
offer.

FRANKFURT, GERMANY (MAY 5, 2008) REUTERS -

Shares in Yahoo fell by almost 20 percent on the Frankfurt Stock
Exchange on Monday (May 5) after  Microsoft withdrew its bid for the internet
company.
    Yahoo shares were down 19.7 percent at 14.55 euros ($22.50) at 0820
GMT. Microsoft rose 3.7 percent.
    Microsoft on Saturday sweetened its initial $31 per share offer for
Yahoo to $33, but then withdrew from the talks when Yahoo Chief Executive
Jerry Yang dug in for a price of $37. 
    Stefan Scharffetter, a lead broker at Baader Wertpapierhandelsbank AG
in Frankfurt, told Reuters: "Well I don't think that Microsoft will
consider making another offer for Yahoo. Maybe someone else from the market
will want to take over Yahoo, but I don't think that Microsoft will, because
we have heard that their pride has been so damaged over the weekend. I think
that Microsoft will keep their hands off Yahoo now and I also think that Jerry
Yang really pushed his luck and only to the detriment of his
company."
    Yahoo now faces growing pressure to find an alternative strategy to
Microsoft's $47.5 billion takeover offer.
    It is likely to push for an advertising partnership with Web search
leader Google, sources familiar with the
matter said on Sunday. A tie-up with Google, seen as a big winner from the
end of the Microsoft-Yahoo talks, should help boost Yahoo's operating
performance in the near term.
    Yahoo is also still considering a deal with another Internet media and
advertising major, such as Time Warner Inc's AOL, people familiar with the
discussions said.