Internet and software giant Microsoft may be set to raise its current bid for Yahoo!, it has been claimed.Initially, Microsoft proposed to acquire all the outstanding shares of Yahoo! common stock for $31 per unit, representing a total equity value of around $44.6 billion.
However, financial services firm UBS has set a price for the search engine's shares at $34 each, Reuters reports.
According to UBS analysts, Microsoft "will do what is needed to get this deal done".
The firm added: "In a hostile deal the acquirer usually does not lead with its best and final offer and we would not be surprised to see Microsoft sweeten the pot somewhat to make the decision easier for Yahoo!'s board."
Additionally, Citi analyst Mark Mahaney stated: "It's reasonable to assume that Microsoft might be willing to increase its offer."
His firm roughly concurred with UBS, citing a 40 per cent chance that Microsoft will raise its bid to increase its chances of acquisition.
Last week, Microsoft's chief executive officer Steve Ballmer said that his firm has "great respect" for Yahoo!, adding that by combining forces with it, Microsoft hopes to deliver "superior value" to its shareholders and better choice to consumers.
Some analysts have declared that Yahoo!'s best chance of maintaining its independence would be to enter into a search pact with rival company Google, with such an agreement potentially opening doors for competing bids, according to reports in the Los Angeles Times.
