The Wall Street Journal is reporting that Yahoo's board plans to reject Microsoft unsolicited $44.6 billion offer.

Quoting "a person familiar with the situation" the paper states that after a series of meetings over this weekend, the board feels that the software giant's bid "massively undervalues" Yahoo.

Apparently fearing Microsoft, taking advantage of Yahoo's recent low share price plans to "steal" the company, the source suggests that Yahoo's board is digging in its heels for what could be a long takeover battle.

The company is unlikely to consider any offer below $40 per share, the person said.

The Wall Street Journal confidently predicts that Yahoo's board plans to send a letter to Microsoft on Monday, spelling out its position.