Even though Microsoft may have tried to pull one over on the entire online industry with its bid for Yahoo, it looks like the latter may have pulled one over on it. According to most recent reports, Yahoo's CEO Jerry Yang will announce on Monday that his company has declined the offer from Microsoft, calling it grossly undervalued.

Speaking to the Wall Street Journal , an insider with access to last week's executive meetings at Yahoo said the company believes Microsoft is attempting to exploit its low stock price to purchase the online firm for a bargain. In fact, the note to Microsoft could say that executives won't even consider an offer until it reaches $40 (£20) per share - $9 more than the current bid.

Anyone but Microsoft

Finally, the source claims Yahoo is determined to accept an offer from any other firm besides Microsoft and is using this tactic as a way to give other companies more time to send a better deal. That said, the Journal claims the most likely scenario could involve Yahoo licensing its search and ad technology to Google instead of an outright acquisition.

So far, neither Yahoo nor Microsoft has commented on this development, but we should hear from both firms tomorrow if the source is correct.