Microsoft tells Yahoo : Make up your mind by Monday or the deal is off

Microsoft's Chief Financial Officer, Chris Liddell, told industry observers and analysts that Yahoo has until Monday morning to make up its mind over Microsoft's proposal to acquire the beleaguered company.

He rebuked Yahoo's claim that Microsoft's bid substantially undervalues the company; since the initial $31 cash-and-stock offer per share that Microsoft laid on the table, Yahoo's shares jumped by more than 37 percent but remains vulnerable to market conditions and jitters.

Lindell said that the offer was fair and added "We've yet to see tangible evidence that our bid substantially undervalues the company, In fact, we see the opposite. Yahoo continues to lose search share and profitability continues to decline year on year.

Microsoft has also dropped hints that it may used the money to acquire other companies and boost its own online businesses.

Ironically, should Microsoft withdraw its offer by next week, its shares could well go up, while Yahoo's would almost certainly go well below its February 1st mark.