Microsoft considers alternative Yahoo deal [View All]

Source: Reuters

19 May, 2008, 0358 hrs IST, REUTERS

SEATTLE: Microsoft Corp said on Sunday it has reached out to Yahoo Inc about an alternative deal that would not involve a full acquisition, in a move that could save the web pioneer from fighting a proxy battle with financier Carl Icahn.

Microsoft said it was not proposing to make a new bid to buy all of Yahoo "but reserves the right to reconsider that alternative" depending on discussions with Yahoo, shareholders of Yahoo or Microsoft, or other third parties.

Icahn launched a campaign on Thursday to replace Yahoo's board with directors who would reopen talks with Microsoft, saying Yahoo had acted irrationally in refusing the giant software company's $47.5 billion bid. A source familiar with Microsoft said that Microsoft had not held discussions with Icahn about Yahoo.

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