Yahoo has responded to Microsoft's recent 3-week ultimatum to accept its takeover offer with a message of rejection to Steve Ballmer, the software giant's CEO.

"We continue to believe that your proposal is not in the best interests of Yahoo and our stockholders", Roy Bostock, chairman of Yahoo's board and Jerry Yang, its chief executive officer, wrote.

Steve Ballmer had attempted to threatened Yahoo into accepting Microsoft's offer that at the time offered a 62% premium for Yahoo shares:

"Our goal in making such a generous offer was to create the basis for a speedy and ultimately friendly transaction. Despite this, the pace of the last two months has been anything but speedy..."

"...If we have not concluded an agreement within the next three weeks, we will be compelled to take our case directly to your shareholders, including the initiation of a proxy contest to elect an alternative slate of directors for the Yahoo board."