Microsoft has issued a statement to challenge what it sees as inaccuracies in
Yahoo's version of its most recent takeover talks. The move highlights the
increasing poisonous relationship between the two firms.
Yahoo recently confirmed it had rejected Microsoft's latest offer to buy its
search business. But Microsoft now
claims
that Yahoo's version of those talks is inaccurate.
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Microsoft said its latest offer was made at the behest of Yahoo chairman Roy
Bostock and denied that the offer was either dependent on a change in company
governance or that a 24-hour deadline for a decision had been set.
Yahoo had cited both the unreasonable deadline and the proposal for a change
in management as two of the reasons for declining the offer.
The latest wranglings suggest that the possibility of Microsoft acquiring
Yahoo's search business is still alive, if a price can be agreed.
But the situation is clouded by the bad blood that exists between the two
company's management teams, and the presence of Carl Icahn, the billionaire
shareholder activist.
Icahn had held long discussions with both Microsoft chief executive Steve
Ballmer and Yahoo's senior management, in an attempt to broker a deal.
But in an
open
letter to Yahoo's shareholders, Icahn revealed that the deal he had brokered
would have resulted in top-level changes – seemingly contradicting Microsoft's
version. "We were willing to discuss keeping a number of the current board
members and Jerry Yang as chief [executive of] Yahoo," the letter stated.
Since the latest talks broke down, Icahn has stepped up his efforts to oust
Yahoo's management team.
The proxy fight will take place at Yahoo's shareholder meeting scheduled for
1 August.
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