Yahoo rejects Microsoft proposal

Offer came with less than 24-hour deadline

NEW YORK - Yahoo over the weekend rejected a restructuring and joint acquisition offer from Microsoft Corp. and Carl Icahn that came with a less than 24-hour deadline.

In a statement Saturday, the online firm said the joint proposal came Friday night and called for the acquisition of Yahoo's search business by Microsoft, while Icahn and a slate of board members would have run the company's businesses. Yahoo's current management and board would have been replaced immediately under the offer rather than let shareholders vote on two slates of directors at their annual meeting on Aug. 1.

Yahoo late Saturday instead suggested Microsoft make a proposal to acquire the whole company for at least $33 per share. It suggested such a deal could be finalized before the shareholder meeting.

Yahoo argued its rejection of the restructuring and joint buyout was based on its complexity and risk, among other things. Plus, doing away with the current leadership would destabilize the company.

The proposed deal would also preclude a potential sale of all of Yahoo "for a full and fair price, including a control premium," the company said.

Yahoo chairman Roy Bostock in a statement lashed out against the suitors. "Microsoft, having failed to advance in search, is aligning with the short-term objectives of Mr. Icahn to coerce Yahoo into selling its core strategic search assets on terms that are highly advantageous to Microsoft, but disadvantageous to Yahoo stockholders," he said.