Wednesday, October 15, 2008

Icahn Says Yahoo Should Sell for $34.375 a Share (Update1)

Billionaire investor said
, the Internet company that spurned progresses from
, should offer to sell itself to its former
suitor for $34.375 a share.

should publicly hold to that terms and cooperate
with , said Icahn, who threatened last calendar month to oust
the board if it failed to hold to a deal. He said today in a
letter to managers that if he derives control, he will cut off
talks on option minutes unless they guarantee
investors will acquire at least $33.

The missive sets more than pressure level on Head Executive Officer
to hit an understanding with or measure aside. Icahn, backed by investors such as as hedge-fund director and BP Capital LLC President T. , have said a
combination is the lone manner the two companies can vie with
, the leader in Internet hunt traffic.

If Microsoft neglects to renew its advances, Icahn bes after to
seek a partnership with on search, as long as the
agreement wouldn't forestall Yokel from a combination with the
software shaper later.

Icahn, who owned 10 million shares of Yokel and options to
buy an further 49 million shares as of May 15, have claimed
that the board sabotaged Microsoft's efforts to take over the
company. His campaigners for Yahoo's , up for re-election Aug.
1, include himself and former Viacom head .

Yahoo President , in a missive to Icahn this week,
said that Yokel have met with Microsoft many modern times in the past
weeks and that the board is unfastened to any deal. Microsoft says
it's no longer interested in a full acquisition, even though
Sunnyvale, California-based Yahoo have reached out
''proactively'' to its former suitor, Bostock said.

Yahoo rose 5 cents to $26.41 at 9:56 a.m. New House Of York clip in
Nasdaq Stock Market . The stock had risen 13 percentage this
year before today. Redmond, Washington-based Microsoft dropped
23 cents to $28.07.

To reach the newsman on this story:
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