Search engine provider Yahoo! has received support from its second largest investor in its bid to fend off Microsoft's takeover bid.Bill Miller, portfolio manager at asset management firm Legg Mason, stated in an interview with the Wall Street Journal that his firm is prepared to support an effort by Yahoo! to retain its independence should Microsoft lower its offer.
Recently, Microsoft wrote to the Yahoo! board telling chief executive Steve Ballmer that "now is the time" to negotiate over the final terms of the deal.
In the letter, Microsoft also threatened to lower its offer if the search engine provider does not come to an agreement within three weeks.
Commenting on the threat, Mr Miller stated that Microsoft had "blundered".
He commented: "Telling the shareholders you are going to take something away from them is not a way to get their support."
The businessman went on to say: "If Microsoft lowers the price, I am not prepared to say that's better than Yahoo! remaining independent."
According to Mr Miller, the current $29 a share bid is "not something he's too excited about", but if Microsoft were to raise the offer, the pressure would shift "very quickly" to Yahoo! to enter into negotiations.
He added that, "bumping the number up" from its current level would have a significant psychological impact on Yahoo!'s shareholders.
