Monday, July 7, 2008

 
SAN FRANCISCO (AP) - Deal talk is in the air again.
 

Microsoft is putting its weight behind investor Carl Icahn's
effort to oust Yahoo's board next month. Microsoft says that a
successful rebellion would encourage the software maker to renew
its takeover bid for Yahoo or negotiate another deal.
 

The development gives Icahn a carrot to dangle before Yahoo
shareholders as he wages a campaign to oust Yahoo's nine directors
at the company's annual meeting August 1st.
 

Icahn has been arguing that a purge of the Yahoo board is the
only way to salvage a deal with Microsoft -- a position that the
Redmond, Washington-based software maker backs with its latest
statement.
 

Yahoo shares were up nearly 9 percent at midday.

(Copyright 2008 by The Associated Press.  All Rights Reserved.)