Bill Miller Sounds Off on Yahoo

Legg Mason guru expects Microsoft to "do what it takes."

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In his latest shareholder letter, Bill Miller says Yahoo is in a "tough spot if it wishes to remain independent." (Legg Mason is the second-largest holder of Yahoo, which rejected Microsoft's unsolicited takeover bid on Monday.) Says Miller: "We think it will be hard for YHOO to come up with alternatives that deliver more value than MSFT will ultimately be willing to pay." He goes on to say that Microsoft needs to sweeten its offer if it wants to make a deal and that he expects the company to "do what it takes" to buy Yahoo.