It had been given just 24 hours to accept the offer

(IDG News Service) Yahoo Inc. late Saturday night rejected a joint proposal from Microsoft Corp. and investor Carl Icahn that called for a restructuring of the Internet company and the sale of Yahoo's search business to Microsoft. Yahoo, which has fought Microsoft's hostile bids for months, has now suggested that its suitor make an offer to acquire the entire company.

The Microsoft-Icahn proposal was made Friday evening, according to a Yahoo statement, and Yahoo was given less than 24 hours to accept it. The board said that it rejected the offer because Yahoo's recent search deal with Google Inc. is financially superior and less risky than Microsoft-Icahn proposal and because the proposal precluded a potential sale of the entire company for a "full and fair price." The board also objected to the proposal's plan to immediately replace Yahoo's current board and top management team.

"This odd and opportunistic alliance of Microsoft and Carl Icahn has anything but the interests of Yahoo's stockholders in mind," Yahoo Chairman Roy Bostock said in a statement. "Clearly, Microsoft, having failed to advance in search, is aligning with the short-term objectives of..........


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