I think MSN does intend to buy Yahoo but because they having been playing hard to get, MSN will probably do it the less popular way...when they withdraw their bid the stock will fall back toward pre-bid levels and MSN can buy it up even cheaper than their offer. They will just have to do some damage control later.
BTW, I mentioned back in FEB, when the offer was first made, that anyone that owns Yahoo should take the $ and run.