As Yahoo shares plummet still further there are rumours that Microsoft is preparing another bid for the troubled search giant.

Yahoo shares dropped below $13-a-share which is less than half the value they were when Microsoft offered nearly $40 a share for them.

For those who came in late, Yahoo’s board claimed that the company was worth a lot more than that and held out for much more cash. As Microsoft walked, Yahoo’s shares fell faster than a Qantas jet with computer troubles.

Yahoo is now worth $19.35 billion and when Microsoft walked away from the negotiating table it was offering $47.5 billion.

With prices this low, the rumour mill has it that Microsoft CEO Steve Ballmer will put in another bid for the company at a much lower price than he previously offered.  Yahoo, which is banking on a delayed deal with Google to stop its slide, might be hard pressed to ignore his overtures this time. X

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