Microsoft's $31 a share offer was 62% above the level at which Yahoo's shares were trading.Yahoo's shares closed at $29.20, suggesting doubt among traders that the offer would be successful or that a higher price would be offered.A source quoted by the Wall Street Journal said that Yahoo's board would be unlikely to consider anything below $40 per share.A $40 a share offer would be a 109% premium to the $19.18 closing price of Yahoo's shares the day before the original offer was announced.Yahoo's shares have not traded above $40 for two years.Yahoo's share price falls have come as it has struggled to compete with Google, which has also been a big competitor for Microsoft.Microsoft's shares have fallen 12% since it made its offer, which may reflect concerns that it has already offered too much or that such a large deal would distract its management away from its core software business.Yahoo has reportedly decided to reject Microsoft's unsolicited takeover offer.
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