Proposed takeover "significantly undervalues" the company, according to Yahoo

Yahoo has rejected Microsoft's takeover bid, which valued the company at $44.6bn (£22.9bn).

The search provider said the offer is too low and is not in the best interests of Yahoo's stockholders.

But today's statement from the company does not rule out accepting future bids.

"The board of directors is continually evaluating all of its strategic options in the context of the rapidly evolving industry environment and we remain committed to pursuing initiatives that maximise value for all stockholders," it said.

Yahoo shares rose 2.1 per cent to $29.81 (£15.31) on the Nasdaq stock exchange in response to the news.

Microsoft has made no statement about whether it will improve its offer, go hostile or withdraw.