Yahoo shareholders are fuming that the Yahoo Board of Directors turned down an offer from Microsoft of $40 a share.

The information has leaked out as part of a court case and makes the Board look like it was really trying to prevent a sale to Microsoft at all costs. In comparison, Yahoo is now trading at $26.40, so turning it down cost shareholders huge amounts of money. Shareholders said that if the Yahoo management and Board of directors had received a $40 offer and didn't take it, they were completely mad.

Microsoft, the world's largest software company, dropped a $33 a share bid for Yahoo, owner of the second-most-popular computer search engine, on May 3rd because  the two couldn't agree on a price. The complaint says that Microsoft Chief Executive Officer, Steve Ballmer, was willing to pay $40 a share but that Yahoo CEO Jerry Yang decided to "delay, to refuse to negotiate in good faith and to erect roadblocks'' to Microsoft's bid, investors alleged in an amended complaint.

More here.