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The Times of London are reporting that Yahoo! is seeking to resume merger talks with AOL as a way of defending itself from Microsoft’s takeover bid. Previous talks broke off after disagreements about price, but the unwelcome takeover bid by Microsoft has spurred hopes of renewed negotiations. Yahoo says they are rejected Microsoft’s offer because they feel it undervalues the company and won’t consider it unless they are offered at least $12 billion more. A source close to Yahoo!’s thinking told The Times:

“All they [Microsoft] are trying to do is pick off the company on the cheap. They’re trying to steal it. And the board is not going to let that happen. They have gone for a valuation that reflects the five-year low of the stock.”

The source added:

“It would have to be in the 40s to start talking, and we would have to get over regulatory issues. It would have to be an offer that would give Jerry Yang something to stand on a podium and smile about.”

Read [Times of London]