(5 May 2008 4:30 pm)

MUMBAI: Yahoo Inc has rejected Microsoft Corp's $47.5 billion takeover bid.

Speculations were on that the deal between the two parties would soon get sealed when Microsoft revised its bid amount to $33 per share, up from its old offer of $31 per share.

However Yahoo board wanted at least $37 per share. And hence the offer was rejected by the internet company.

Microsoft has now made it clear that it will not make a revised bid.

Now that the deal has collapsed, Yahoo is expected to face an enormous amount of shareholder lawsuits.

The company already faces at least seven lawsuits over its handling of the Microsoft offer which were filed post Yahoo's initial refusal of a deal in February.

Previously, Yahoo had denied entering into any formal negotiations with Microsoft, stating that the initial price Microsoft made public in February did not suitably value either Yahoo's search and display advertising technology, or its overseas holdings.

The lawsuit states that Yahoo explored tie-ups with companies such as Google Inc and Time Warner Inc's AOL only to avoid a deal with Microsoft. The lawsuit also lays claim to the point that these deals would only annihilate shareholder value.