NEW YORK, April 6 Yahoo (YHOO.O) is not opposed
to a deal with Microsoft (MSFT.O) but Microsoft should pay more
than $31 a share if it wants to buy the company, Yahoo plans to
say in a letter to Microsoft, a person familiar with the matter
said on Sunday.
In the letter to be sent on Monday, Yahoo is also expected
to reject Microsoft's suggestion that its business is
deteriorating, the person said.
Microsoft Chief Executive Steve Ballmer in a letter to
Yahoo's board on Saturday threatened to lower his company's bid
and mount a proxy campaign if the Internet company does not
agree to a deal in the next three weeks.
(Editing by Jan Dahinten)