It seems Yahoo’s share prices will go up as Microsoft is targeting Yahoo shareholders to checkmate Jerry Yang. Soon after Yahoo has rejected the MS takeover offer, calling it too low, Microsoft described it as unfortunate and it’s own proposal was full and fair. This statement suggests that at least for now, the company is not willing to raise it’s offer

Experts feel that Microsoft could ratchet up pressure on Yahoo’s board by taking it’s offer directly to shareholders and waging a proxy fight to oust Yahoo’s directors, it has untill March 13 to nominate a new slate of directors.

According to Michael Klausner, a Stanford Law School Professor, “Absent such an offer or a deal that could persuade investors that Yahoo share will go up significantly, the company’s best bargaining chip was the prospect of a friendly deal at a higher price.”

Yahoo said it’s board would continue evaluating all of it’s strategic options. Microsoft’s earlier offer to buy Yahoo for $44.6 billion or $31 a share, in a mix of cash and stock. After a decline in Microsoft’s shares the value of the offer now stands at less than $29 a share.