21 February 2008
Yahoo and Salesforce.com shares saw a rise on Monday due to takeover speculation and rescued the rest of the market from the latest credit market fears.
Yahoo shares edged higher Monday, lifting the tech sector for the third straight day as investors continued to speculate on the company's future.
Yahoo gained 2.3% after the company formally rejected Microsoft's near $45 billion bid. Microsoft responded saying that it remains interested in a deal; even as speculation mounted that Yahoo may pursue a partnership with Google or a merger with AOL.
Microsoft lost 1.2% on fears that the company could be forced to overpay for Yahoo, which is seeking something in the neighbourhood of $40 a share.
Yahoo wasn't the only tech stock gaining on merger speculation. Salesforce.com gained nearly 8% on reports that Oracle could be interested in making a bid for the company.
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