NEW YORK (Reuters) - Yahoo Inc's shares tumbled on Monday as investors punished the company for rejecting Microsoft Corp's $47.5 billion bid, though the fall was cushioned by hopes a deal may still be possible.
Shares of Yahoo fell as much as 20 percent in early Nasdaq trading before recovering some to trade at $24.47, still down 14 percent and far below the $33-per-share Microsoft offer.
"I think at $24, the stock's overvalued as a standalone Yahoo," said Mike Binger, a fund manager at Thrivent Financial, which owned both Yahoo and Microsoft shares. "I think $33 was fairly generous for Yahoo and if Yahoo won't accept it, they (Microsoft) did the right thing in walking."
Microsoft Chief Executive Steve Ballmer withdrew the bid on Saturday after talks collapsed, with Yahoo CEO Jerry Yang demanding $37 per share.
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