Yahoo snub to Microsoft offer - Business - Evening Standard
       

Yahoo snub to Microsoft offer

Internet giant Yahoo has rejected a "ludicrous" proposal from Microsoft and activist shareholder Carl Icahn that would break the firm up.

It accused the pair of trying to "coerce" Yahoo executives into selling assets.

Under the plan, Microsoft would buy Yahoo's search business and leave Icahn with the rest of the company.

Yahoo said it was an "odd and opportunistic alliance" that would be bad for investors.

"Carl Icahn and Microsoft presented us with a 'take it or leave it' proposal," Yahoo chairman Roy Bostock said. "It is ludicrous to think that our board could accept such a proposal. We will not be bludgeoned into a transaction that is not in the best interests of our stockholders."

Icahn is trying to pile pressure on Yahoo's chief executive Jerry Yang ahead of a fight for control of the board at the company meeting on 1 August.

The latest proposal came Friday evening with a 24-hour deadline.

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