Yahoo Inc’s board has rejected Microsoft Corp.’s $44.6 billion takeover bid after concluding the unsolicited offer undervalues the slumping Internet pioneer, a person familiar with the situation said Saturday. The Wall Street Journal had quoted an unnamed source as saying Microsoft’s offer of $31 per share was an attempt to “steal” the company and that Yahoo was unlikely to consider anything under $40 per share — double its price in January. At $40 per share, the value of the cash and stock deal would be worth $51.1 billion.

Alternatively, Microsoft could sweeten its bid. Many analysts believe Microsoft is prepared to offer as much as $35 per share for Yahoo, which still boasts one of the Internet’s largest audiences and most powerful advertising vehicles despite a prolonged slump that has hammered its stock.

The Wall Street firm predicted a higher bid was the most likely option but that a price of $40 per share “would seem very aggressive” because Microsoft would have a hard time justifying it against Yahoo’s anticipated cash flows. For that reason, Citigroup said paying $30 to $31 per share for Yahoo was “reasonable.”

Microsoft’s half-stock, half-cash offer was originally worth $44.6 billion or $31 per share — a 62 percent premium to Yahoo’s stock price. Since then, Microsoft shares have fallen and the deal is now worth $41.8 billion. A $40 price would represent a 109 percent premium to Yahoo’s close at $19.18 per share on January 31, before Microsoft went public with its bid.

Yahoo stock last traded above $40 two years ago, before competitive pressures from Google, product missteps, management defections and repeated restructuring moves chopped the price below $20.

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