Legg Mason portfolio manager Bill Miller is kind-of-sort-of on Yahoo’s side as it deals with Microsoft, judging from a new interview. Since Legg Mason holds about seven percent of Yahoo’s shares, this is important.
Legg Mason’s Bill Miller
Legg Mason and Miller seem willing to offer the most support in the event Microsoft lowers its bid. “Telling the shareholders you’re going to take something away from them is not a way to get their support,” Miller said to Kevin J. Delaney. “If Microsoft lowers the price I’m not prepared to say that’s better than Yahoo remaining independent.”
And even if a fight caused Microsoft to retract its bid entirely and Yahoo’s stock to take a nosedive, Miller doesn’t see any problems. “If Yahoo drops, we’d just buy more of it. I certainly think Yahoo will be worth more in a couple of years than it’s worth now, and especially worth more to Microsoft.”
Only in the event that Microsoft raises its offer does Miller seem to be in favor of an acquisition. “If Microsoft raises the offer, the pressure shifts very quickly to Yahoo to negotiate,” he told Delaney. “To me, bumping the number up a buck, that would have a big impact psychologically on shareholders.”
Unfortunately, Miller didn’t make too clear where he and Legg Mason stand if things stay exactly as they are. Also, it only seems fair to share a recent Washington Post headline: “Legg Mason Fund Hits 26-Year Low.”
