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Yahoo Snubs Microsoft-Icahn Takeover Bid

Says new offer was better, but still not in shareholders' interest

By Matt Cantor,  Newser Staff

Posted Jul 13, 2008 6:20 AM CDT

(Newser) – Yahoo has rejected another takeover push, this time from Microsoft and investor Carl Icahn, the Wall Street Journal reports. The bidders gave the Internet giant less than 24 hours to decide on an offer that would sell its search component to Microsoft and the rest of the company to Icahn in a move that would have required Yahoo to dump its current board.

“This odd and opportunistic alliance of Microsoft and Carl Icahn has anything but the interests of Yahoo's stockholders in mind,” said Yahoo chair Roy Bostock, albeit noting that the latest offer did mark an improvement on Microsoft's prior bid. But Yahoo remains open to a possible takeover, offering to sell itself for $33 a share or to sell just its search branch—offers Microsoft rejected.

In this May 5, 2008 file photo, workers walk outside of a Microsoft campus in Mountain View, Calif.
In this May 5, 2008 file photo, workers walk outside of a Microsoft campus in Mountain View, Calif.   (AP Photo/Paul Sakuma)
Yahoo Inc. CEO Jerry Yang  speaks during the D6 Conference in Carlsbad, Calif., on Wednesday, May 28, 2008.
Yahoo Inc. CEO Jerry Yang speaks during the D6 Conference in Carlsbad, Calif., on Wednesday, May 28, 2008.   (AP Photo/D:All Things Digital)
In this Oct. 11, 2007 file photo, private equity investor Carl Icahn speaks at the World Business Forum in New York.
In this Oct. 11, 2007 file photo, private equity investor Carl Icahn speaks at the World Business Forum in New York.   (AP Photo)
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