The Week: City news - Yahoo! bid withdrawn

Microsoft has withdrawn its $44.6 billion bid to acquire Yahoo! after the two failed to agree a price.

Steve Ballmer, Microsoft's chief executive, wrote to the Yahoo! chief executive, Jerry Yang, to inform him of the decision, which followed speculation last week that the two companies might re-enter negotiations. Yahoo!'s shares fell by 15 per cent on the news, but are still higher than the $19 per share they were valued at when Microsoft made the original bid.