Microsoft/Yahoo: Toodeloo Yahoo

Yahoo shareholders could be forgiven for wanting to swallow Microsoft’s $44.6bn stock and cash offer for the internet group in one gulp. After all, Yahoo has been a train wreck. The stock had declined 45% in the past two years, and despite replacing its chief executive last year with one of its founders, shows little sign of getting back on the rails. But Yahoo’s board shouldn’t cave in just yet - it should negotiate with Microsoft. Sure, the software giant’s $31 a share hostile bid looks delic...