[kajecounterhack]

Is it possible though, that the stock prices went up as a sign of investor relief? I'm not sure all stockholders were too happy with the deal.

[aston]

If Yahoo! does reject the offer, their stock price should, were the market completely rational, fall a lot. Back to what it was before Microsoft made the offer in the first place.

Yahoo's the same company it was two weeks ago; the stock was just worth more since MS was offering a premium.

[nostrademons]

The other possibility is that investors are not completely rational.

Yahoo is the same company it was in November; the stock is just worth what it was then. It's the last 3 months that's been the aberration. ;-)