Google Inc pulled out of a search advertising partnership with Yahoo Inc due to regulatory objections, causing Yahoo shares to rise as investors hoped the move could lead to a resumption of deal talks with Microsoft Corp. Microsoft had lobbied hard against the partnership which Yahoo initially struck with Google as a way to fend off an unsolicited takeover bid from Microsoft.
”(Yahoo) investors are reacting favorably to the news (that the Google deal is off) as it might open the door to a possible deal with Microsoft, including a possible outright takeover of Yahoo,” said Frederic Ruffy, options strategist at New York-based Web site WhatsTrading.com.
