Yahoo shareholder Legg Mason tells the Wall Street Journal it’s ready to back Yahoo’s effort to stay independent if Microsoft lowers its buyout offer.

In an interview, portfolio manager Bill Miller of Legg Mason, which is the second biggest Yahoo shareholder with a nearly 7 percent stake, calls Microsoft’s moves to threaten a lowered bid a “blunder.”

“If Microsoft lowers the price I’m not prepared to say that’s better than Yahoo remaining independent,” he said.

Miller adds, “If Microsoft raises the offer, the pressure shifts very quickly to Yahoo to negotiate … To me, bumping the number up a buck [from $31 a share], that would have a big impact psychologically on shareholders.”

But it looks like Miller’s peers within the shareholders group are ready to throw in the towel. Piper Jaffray analyst Gene Munster on Monday said their survey of 20 institutional Yahoo shareholders say most of them favor the current deal to no deal at all.

Meanwhile, Yahoo Chairman Roy Bostock tells Bloomberg the company’s growth plans is gaining investor support.

Either shareholders are more willing to divulge their true feelings to Munster or Bostock is delusional. We’re not sure.
(WSJ)

Keep an eye on:

• Walt Disney Studios previewed 10 animated movies, most in digital 3-D, that it will release during the next four years, including further installments in the “Toy Story” and “Cars” series and two new fairy tales. (Reuters )
• “American Idol” fans say baby-faced crooner David Archuleta will win the No. 1 television show’s current competition, even though they picked rival David Cook as the most talented performer, an E-Poll/Reuters survey found. (Reuters )
• CBS layoffs signal a financial squeeze on TV stations (LA Times )

(Photo: Reuters)