With Microsoft's withdrawal of its increased Yahoo bid on Saturday, the Internet search pioneer's two largest institutional investors are fuming, according to a source familiar with their thinking.
The two investors were willing to accept an offer of $34 a share, the source noted. Microsoft was offering an increased bid of $33.
"Yahoo overplayed its hand," said the source. "If Yahoo's two largest investors are willing to take $34 and Microsoft is willing to give $33, it's a lot closer than Yahoo's $37 (a share)."
Capital World Investors, which recently doubled its holdings in Yahoo, bringing it to a 10.1 percent stake, … Read more