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The software giant Microsoft has withdrawn its offer for the internet services company Yahoo because the two can not agree on the price. Microsoft said it had raised this offer by about $5 billion to $33 a share. But Yahoo wanted $37 dollars a share. Jon Leyne explains.

"Amid the recent chaos of the banking sector and the gloom of the credit crunch, Microsoft's sudden $44 billion bid to buy Yahoo last February was for many a welcome bolt out of the blue. The news that software giant has now decided to walk away entirely will shock the technology industry just as much. And so what now for Yahoo? Its shares had fallen by 1/3 before Microsoft's bid. It may have fought over a takeover this time but how much longer."

Reports from Egypt say there's very little sign that people are heeded a call by the opposition for a nationwide strike in protest against rising food prices. There is a heightened security presence in the town of Mahalla al-Kubra where there were clashes last month between striking textile workers and riot police. But in the capital Cairo, shops open as normal in the streets are busy. The opposition had urged people to stay at home or to wear black if they did go out.

World News from the BBC.

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