Update: Microsoft may renew Yahoo interest

Source: Exec Digital USA

Date :7/8/2008 12:08:38 AM

Microsoft will renew takeover talks with Yahoo if the group’s board is ousted at next month’s annual meeting.

Shares in Yahoo closed up US$2.56 as Microsoft publically backed Carl Icahn for the first time.

The software maker said a successful shareholder rebellion would encourage it to renew its bid.

Microsoft is seeking to buy Yahoo's Internet search engine or possibly the entire company.

The endorsement gives Icahn a huge boost as he bids to replace Yahoo chief executive Jerry Yang at the company's annual meeting on August 1.

If successful it could pave the way for Microsoft to achieve its goal of buying the group.

There are alternatives to the deal such as the proposed merger of Yahoo and Time Warner’s AOL division. But, the pair is not thought to be close to an agreement.