April 23 (Bloomberg) -- Microsoft Corp. Chief Executive Officer Steven Ballmer said the world's biggest software maker doesn't plan to raise its $44.6 billion offer for Yahoo! Inc.

``We are offering a lot of money,'' Ballmer said today at a Microsoft conference in Milan. ``If Yahoo's shareholders like it, that's great. We are prepared to go forward without a merger with Yahoo.'' Microsoft has offered $31 a share in cash and stock.

In an effort to catch up with Google Inc. in online search and advertising, Redmond, Washington-based Microsoft made an unsolicited offer for Yahoo in January. Yahooo's board rejected the bid as too low. Microsoft has said it will take the bid directly to Yahoo's shareholders.

Yahoo, owner of the second most popular search engine, yesterday reported its first quarterly profit increase in more than two years and gave a forecast for this period that met analysts' estimates. The shares dropped in extended trading on investor disappointment that the growth wasn't stronger.

Sales climbed 14 percent last quarter, while Google posted growth of 46 percent.

Yahoo, based in Sunnyvale, California, has four days left to consider Microsoft's offer. Ballmer threatened to nominate an alternate slate of board members and possibly lower the bid if Yahoo failed to agree to terms by April 26.

When asked if Microsoft might be interested in buying Google, Ballmer said the company wouldn't make an offer because it's too expensive and there would be regulatory and antitrust concerns.

Microsoft fell 17 cents, or 0.6 percent, to $30.25 in Nasdaq Stock Market trading yesterday. The shares have dropped 15 percent this year.

Yahoo declined 1 cent to $28.54 yesterday and the stock has risen 23 percent this year. Shares of Mountain View, California- based Google climbed $17.21, or 3.2 percent, to $555 yesterday. The shares have fallen 20 percent this year.

To contact the reporters on this story: Sara Gay Forden in Milan at sforden@bloomberg.net; Alex Armitage in London at aarmitage@bloomberg.net

Last Updated: April 23, 2008 06:39 EDT