Yahoo/Microsoft deal may be back on

by admin May 14, 2008 at 10:59 am

Corporate raider Carl Icahn steps in

The Yahoo/Microsoft merger may be back on after it emerged that billionaire investor Carl Icahn has taken a sizable shareholding in Yahoo.

Icahn has bought 50 million Yahoo shares over the past week, according to The Wall Street Journal and CNBC, and is considering trying to force the Yahoo board to do a deal with Microsoft.

Microsoft chief executive Steve Ballmer officially withdrew the bid nearly a week ago.

Icahn could force a proxy fight with the Yahoo board, and nominate four directors of his own who would raise the buyout issue again. Icahn used a similar tactic in March to force Motorola to spin off its mobile phone arm.

Microsoft initially offered $31 per share for Yahoo, then upped it to $33, but the Yahoo board was holding out for $37.

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