Monday May 5, 01:02 PM
Yahoo shares plunge after Microsoft drops takeover bid
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FRANKFURT (AFP) - The price of shares in Internet group Yahoo (NASDAQ: YHOO - news) plunged here on Monday after software giant Microsoft (NASDAQ: MSFT - news) dropped a friendly bid for the company.
Shares in Yahoo, the second biggest-Internet advertising platform, had lost 19.22 percent to 14.63 euros in open-market trading.
Yahoo shares are not quoted in Germany but can be sold on several markets, including the one in Frankfurt, a spokeswoman for the market operator Deutsche Boerse (Xetra: 581005 - news) said.
Previous gains in the stock had been driven by Microsoft's takeover bid, trader Kai Wagner told AFP.
Now, the "market is purely reacting to the cancelled takeover bid," he said.
The share price were expected to fall roughly "back to the level where it was before the bid," Wagner said.
Microsoft, the world's biggest software company, decided on Saturday to walk away from a bid for Yahoo, after Yahoo refused an offer that valued it at more than 47 billion dollars.
Yahoo shares were also expected to plunge when trading opened in New York.
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