Microsoft raises offer in Yahoo takeover bid

SAN FRANCISCO, Saturday (AFP) - Microsoft and Yahoo began takeover talks yesterday with the US software giant open to raising its 44.6-billion-dollar bid for the struggling Internet pioneer, a source close to the situation told AFP.

Yahoo and its unsolicited suitor are privately discussing the buyout bid after months of negotiating indirectly with public comments, emails and online postings, the source said.“They are talking -- there are no guarantees,” the source told AFP.

“Microsoft signaled it might raise the price and the question is how far. It could still fall apart.”

Microsoft has indicated it might raise its ante from 31 to 33 dollars per share and the Yahoo board has signaled it might accept an offer of 37 dollars per share, according to Canaccord Adams analyst Colin Gillis.

“They are close enough now that to sit down and talk about it makes sense,” Gillis said of Microsoft and Yahoo.