Reuters has reported that Microsoft has told Yahoo it’s not going to get abetter deal than the one already on the table, and that the company is prepared to be hostile in its takeover tactics if Yahoo keeps on with its “unrealistic expectations.” With nodeal in sight, Microsoft is now assessing its option, but last week Microsoft’s CFO, Chris Liddell, said, "Unfortunately, the transaction has been anything but speedy, and has beencharacterised by what would appear to be unrealistic expectations of value. We have yet to see tangible evidence that our bid substantially undervalues [Yahoo]. In fact, we see the opposite."Although one of Microsoft’s options is simply to walk away, the likeliest strategy at this point will be a proxy battle.