According to The Associated Press' recent report, citing an unnamed source, Internet pioneer Yahoo's board, which has been exploring several alternatives during the past week, might possibly reject Microsoft's unsolicited $44.6 billion acquisition bid on the grounds that the offer undervalues the struggling company.

In case Microsoft is bent upon the taking over Yahoo, with the intention of taking on rival Google, the software maker can undertake either of the two of following routes - it can either override the Yahoo board and take its original $31 per share offer directly to the company's shareholders; or it can sweeten the offer by, as per the analysts' expectations, up to $35 per share!

Despite the fact that Yahoo has failed to find any other potential bidders offering a higher price than Microsoft, the company's board appear to have arrived at a consensus that the Microsoft offer is 'inadequate.'

Though the board's rebuff of the Microsoft bid is not official as yet, it is believed that rejection might further set the shareholders against the company, with most of them already displeased with the management for its supposed slip-ups that brought about plunging profits for five consecutive quarters.

In case the Microsoft deal goes amiss, Yahoo's management team would be under immense pressure convince Wall Street the company's market value can be boosted beyond Microsoft's offer!