Yahoo shareholders file case against Yahoo

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Web giant Yahoo has said it is facing seven shareholder lawsuits over its handling of Microsoft's unsolicited takeover bid, which it has rejected.

It also said that dealing with the unwanted proposal, worth more than $40bn (£20.2bn), was distracting for management and staff.

The comments, made in Yahoo's annual report, come as Microsoft steps up efforts to take control of the firm.

Yahoo has said it is worth more than the $31-a-share it is being offered.

But Microsoft has maintained that its cash-and-share proposal is a "full and fair" valuation.

source: BBC News