Citigroup says Microsoft likely to raise Yahoo offer

Citigroup said it is likely Microsoft Corp will raise its $31-per-share offer for Yahoo and upgraded Yahoo shares to "buy" from "hold."

The brokerage also raised its price target on Yahoo's stock to $34 from $31, saying it believed Microsoft remained committed to its offer and "is capable of and willing to" increase that bid to conclude the deal.

"While we continue to see no other competing bidders, we believe Yahoo is aggressively pursuing strategic alternatives," analyst Mark Mahaney said in a note to clients.

One possibility is a tie-up with Time Warner, whereby Time Warner would contribute its online content assets to Yahoo in exchange for a stake, the analyst said.

"We believe this could serve as a forcing function to a higher Microsoft bid."

View: Reuters

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+1 for not trusting citi group. I recently transferred a lot of money from my Citi account to another bank account and it came after 10 days and a lot of angry phone calls and arguments.

Their excuse was "We are facing a sudden increase in the number of transactions." WTF..! I have decided to close all 3 of my Citi accounts and be done with the damn bank. I am also going to ask them the interest loss and also the interest I have to due to the money coming in late.

(wrack said @ #2)
+1 for not trusting citi group. I recently transferred a lot of money from my Citi account to another bank account and it came after 10 days and a lot of angry phone calls and arguments.

Their excuse was "We are facing a sudden increase in the number of transactions." WTF..! I have decided to close all 3 of my Citi accounts and be done with the damn bank. I am also going to ask them the interest loss and also the interest I have to due to the money coming in late.

Hey you got lucky, I had to close out 25 CD accounts and it took 7 months and about 30 phone calls, 10 letters and a certified letter....

This coming from a company that doesn't know how to manage money.... I bet they will raise it but I don't trust citigroup anymore...