Yahoo up after Microsoft nudge

Shares of Yahoo received a boost in morning trading, following Microsoft's announcement over the weekend that the two companies have re-entered talks. Yahoo climbed as high as $28.33 a share in early morning trading, before settling back a bit to $27.93 per share, up nearly 1 percent, as the morning progressed. Yahoo, on Friday, closed at $27.66 a share. On Sunday, Microsoft announced a proposal that calls for a transaction, but would not involve the acquisition of all of Yahoo's assets. That said, Microsoft further noted that it "reserves the right to reconsider" tossing in a new bid, depending on how discussions go with the Yahoo, Yahoo shareholders, and third parties, and within its own company ranks. Collins Stewart analyst Sandeep Aggarwal considers a Microsoft-Yahoo combination imminent, valuing Yahoo's search business at $21 billion, its display advertising at $14 billion, and its international investments at $9.25 billion.