We'll See How "Substantially Undervalued" You Are After a 6-Month Proxy Fight

Microsoft does not take rejection well, and having already been rebuffed once in an attempt to acquire Yahoo, it’s not about to be rebuffed again.

The software behemoth issued a statement this afternoon calling Yahoo’s rejection of its $31-a-share takeover offer “unfortunate” and vowed to press on with its bid. “It is unfortunate that Yahoo (YHOO) as not embraced our full and fair proposal to combine our companies,” the company said in a statement. “Based on conversations with stakeholders of both companies, we are confident that moving forward promptly to consummate a transaction is in the best interests of all parties. … The Yahoo response does not change our belief in the strategic and financial merits of our proposal. As we have said previously, Microsoft (MSFT) 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.”

Sounds like Yahoo needs to find an alternative bidder if it expects to get anywhere near that $40-a-share it’s hoping for from Microsoft.