Microsoft Corporation (NASDAQ: MSFT) proposed the acquisition of YHOO for $31 per share:
MSFT offer is payable to Yahoo!, Inc. (NASDAQ: YHOO) shareholders in $31 cash or 0.9509 per share of MSFT. MSFT was recently trading down $2.10 to $30.49. Pacific Growth Equities downgraded its rating on MSFT to Neutral from Buy. GROW said "the uncertainties surrounding its YHOO bid and significant integration risks to serve as an overhang on the stock." MSFT call option volume of 208,765 contracts compared to put volume of 128,371 contracts. MSFT March option implied volatility of 28 was near its 26-week average of 26 according to Track Data, suggesting non-directional risk.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
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