Yahoo! is believed to be ready to shoot back at Steve Ballmer's letter of ultimatum issued on the weekend. The board considers Microsoft's offer to undervalue the company's worth. The offer of $31 per share of Yahoo!, on February 1st, has actually gone down to about $29 a share as Microsoft's shares have fell during the time since and the offer contains a share swap. The New York Times is reporting "Yahoo’s response is expected to reject negotiations and explain why Yahoo’s board believes the current offer price is too low." We'll just have to wait and see who forms the more compelling argument in the shareholders eyes.