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.
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.
Letter to Carl Icahn suggests that Microsoft will still deal, but on one condition... 07 Jul 2008
Yahoo board running scared from disgruntled shareholders 23 May 2008
The software giant cannot afford to let its hapless courtship drag on much longer 22 May 2008
Stock plummets as Microsoft chief dismisses chance of new deal 20 Nov 2008Yahoo statement 'contains inaccuracies', claims Redmond 15 Jul 2008
Spat over use of green Union flag advertising image could end up in court 06 Jul 2009
New team of auditors and investigators to keep tabs on firms covered by the Carbon Reduction Commitment 06 Jul 2009
More news
As Businessgreen.com launches its new Asia-Pacific site, editor James Murray argues that green business leaders need to develop a more sophisticated view of the continent 06 Jul 2009
From record-breaking solar panels to the International Renewable Energy Agency's new home, we round up the top stories from the past week 03 Jul 2009
Well, I hope they got a no win, no fee deal. I don't like being cynical (it's more of a congenital thing)... 03 Jul 2009 More in-depth
Post your comment
Send an email to the Business Green editor at feedback@businessgreen.com
