Do I Hear $32 Per Share? Sold to the Software Giant in Row 3!

Much as Yahoo’s (YHOO) second largest shareholder, investment firm Legg Mason, may view Microsoft’s (MSFT) threatening letter as a boorish tactical blunder, the company seems willing to back its proposed takeover of Yahoo at the right price.

“If Microsoft raises the offer, the pressure shifts very quickly to Yahoo to negotiate,” Legg Mason portfolio manager Bill Miller told The Wall Street Journal. “To me, bumping the number up a buck [from $31 a share], that would have a big impact psychologically on shareholders. … If Microsoft lowers the price, I’m not prepared to say that’s better than Yahoo remaining independent.”

But you are if Microsoft “bumps it up” to $32, right?