Microsoft, Yahoo talks intensify: source Friday May 2, 3:11 pm ET
NEW YORK (Reuters) - Microsoft Corp (NasdaqGS:MSFT - News) and Yahoo Inc (NasdaqGS:YHOO - News) have intensified talks in an effort to reach a friendly agreement on a buyout of Yahoo, a source familiar with the matter said on Friday.
ADVERTISEMENT Yahoo shares rose 6.4 percent on news of the accelerated talks, as investors had feared Microsoft might walk away from its unsolicited bid or launch a proxy battle.
Microsoft Chief Executive Steve Ballmer said on Thursday that walking away from a deal with Yahoo was one of three options the company was weighing.
News of the heightened talks was first reported on the Wall Street Journal's website.
Yahoo officials could not immediately be reached. Microsoft declined comment on the report.
Microsoft shares fell 1.7 percent to $28.89.
(Reporting by Michele Gershberg and Anupreeta Das in San Francisco; Editing by Brian Moss and Gerald E. McCormick)
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