Microsoft will move forward with offer despite Yahoo rejection

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SEATTLE (AP) -- Microsoft says Yahoo's rejection of its multibillion dollar buyout offer is "unfortunate," and that moving forward on a deal is in both companies' best interest.

Microsoft Corp. said Yahoo's response Monday "does not change our belief in the strategic and financial merits of our proposal."

The Redmond, Wash., software maker added that it reserves the right to "pursue all necessary steps" to ensure Yahoo's shareholders have a chance to benefit from the offer that was initially valued at $31 per share.