'Yahoo bid makes sense as is'

"We still think the deal makes sense with the price and structure that we announced and we hope that over time that becomes a reality and we're working towards that," Steve Ballmer said at a news conference on Monday.

"There's been a range of dialogue and there's a range of alternatives being considered. I think it's best for me not to get into the detail," Ballmer added at the event in Hanover, Germany, on the eve of CeBIT, Europe's biggest technology fair.

Ballmer declined to say whether he had authorised or would authorise a proxy fight to convince Yahoo shareholders to agree to the deal by nominating a slate of directors to take control of Yahoo's board.

"We think there's a lot of merit in the deal for Microsoft, for Yahoo, for their shareholders... consumers and advertisers," he said. "We are trying to have appropriate levels of engagements with those three constituencies."

Microsoft has offered to buy Yahoo for $31 per share in cash and stock, a move which would increase its competitiveness against internet search and advertising giant Google.

Yahoo's board says the offer undervalues the company.

Yahoo shares opened at $27.73 on Monday. (Reuters)