SAN FRANCISCO/SEATTLE (Reuters) - Microsoft Corp gave Yahoo Inc no hope of a higher takeover price, saying it was ready to go hostile or even call off its bid if Yahoo maintains "unrealistic expectations" of a better deal.
"Speed is of the essence for the deal to make sense," Chief Financial Officer Chris Liddell said on a conference call on Thursday. If no deal is reached by this weekend, Microsoft will reconsider its offer and reveal new plans next week, he said.
"Unfortunately, the transaction has been anything but speedy and has been characterized by what would appear to be unrealistic expectations of value," he said of Yahoo's moves to frustrate Microsoft's unsolicited merger proposition.
Microsoft sees Yahoo as a way to compete with arch-rival Google Inc in the Internet search and advertising arena, but company executives have repeatedly said they have limits to what they are willing to pay to get a deal done.
"We have yet to see tangible evidence that our bid substantially undervalues the company," Liddell said, referring to Yahoo. "In fact, we see the opposite."
Liddell reiterated a threat Microsoft made three weeks ago to Yahoo's board of directors that it would consider cutting its bid, now worth about $44 billion, and take its case to Yahoo shareholders if a deal is not reached by this Saturday.
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