Yahoo Rebuffs Ichans Offer

I think the execs at Yahoo are living in a dream world rebuffing another offer to sell.

``The board of directors of Yahoo has acted irrationally and lost the faith of shareholders and Microsoft,'' said Icahn, 72. ``I sincerely hope you heed the wishes of your shareholders and move expeditiously to negotiate a merger with Microsoft, thereby making a proxy fight unnecessary.''

It looks like they might go to either a proxy fight or maybe Microsoft will come back with a raised offer. I do think that the "vote no" campaign will go a long way to either ousting their board or booting Yang though.

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Now Carl Ichan May Lauch a Proxy Fight for Yahoo?

This saga is getting stranger and stranger.

Billionaire investor Carl Icahn is considering launching a proxy fight at Yahoo, according to people who have spoken with Icahn.

Icahn has declined to comment.

Late last week, Icahn began building a significant position in Yahoo that may be as much as 50 million shares, these sources said.

That is some serious money he has invested in Yahoo. Ichan must have been the big investor that was propping up the price at $25 a share last week. I wonder if he can pull off the proxy fight before Thursday when the offer expires?

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It Seems Microsoft May Blink on Yahoo Deal and Offer $35 a share

It seems that way to "a person familiar with the matter."

The New York Times, citing unnamed sources, reported Microsoft boosted the offer by "by several dollars" per share, lending weight to the assertion by many market analysts that Microsoft can afford to pay up to $35 a share.

Representatives from Microsoft and Yahoo declined to comment on the negotiations. The talks were expected to continue into the weekend.

I guess the good trade was to be long Yahoo and short Microsoft after all. I was thinking of going long Yahoo to catch this deal but I was too afraid of Microsoft walking away from the thing all together. If MSFT did walk away then you would see Yahoo's shares drop back down to the teens. Now it looks like a $31 to $35 or so a share sweetened deal may be on the table. If Yahoo walks away from this offer, however, then I would be betting that Microsoft scuttles the whole thing and their share price should head back north of $30 again.

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