Microsoft is sticking to its guns

Redmond (WA) – Microsoft apparently has no intentions giving up on the proposed acquisition of Yahoo and at least at this time, the company has not publicly agreed to shell out more money for the Internet company.

In a statement released late Monday, Microsoft called Yahoo’s decision to reject its $44.6 billion offer “unfortunate.”

“We are offering shareholders superior value and the opportunity to participate in the upside of the combined company. The combination also offers an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market. A Microsoft-Yahoo ! combination will create a more effective company that would provide greater value and service to our customers. Furthermore, the combination will create a more competitive marketplace by establishing a compelling number two competitor for Internet search and online advertising.” the statement reads.

It is generally believed that Yahoo actually has not rejected Microsoft’s purchase offer, but simply put the ball back into Microsoft’s field with a counter offer of about $41 per share – or a price tag of about $57 billion.

Yahoo’s board of directors yesterday said that it does not believe that Microsoft’s “proposal is not in the best interests of Yahoo and our stockholders” as it substantially undervalues the company.

At this time, Microsoft is not increasing the purchase price, but noted that it “reserves the right to pursue all necessary steps to ensure that Yahoo’s shareholders are provided with the opportunity to realize the value inherent in our proposal.”

“The Yahoo response does not change our belief in the strategic and financial merits of our proposal. As we have said previously,” Microsoft wrote.