Board members at Yahoo are planning to reject Microsoft's bid to buy out the Internet pioneer.
The Yahoo board believed the unsolicited $44.6 billion offer massively undervalued the company, according to a person familiar with the matter.
The $31-per-share bid was made public on Feb. 1.
Board members so far would only say they were studying the offer.
Yahoo's board intends to send a letter to Microsoft on Monday explaining its decision, the source says.
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