Microsoft to challenge Google again

Microsoft Corp. has announced that it had reachedout to Yahoo Inc. with a possibility of a fresh deal that does notinvolve an acquisition of the Internet company."Microsoftis considering and has raised with Yahoo an alternative that wouldinvolve a transaction with Yahoo but not an acquisition of all ofYahoo," Microsoft said in a brief statement.Theannouncement comes on the heels of Yahoo shareholder and billionaireinvestor Carl Icahn launching a proxy fight to wrest control of theYahoo board at the upcoming July three annual shareholders meeting.Microsoft withdrew its unsolicited $33-a-share buyout bid on May three, after the two sides failed to agree on a price. Icahnhas called the Yahoo board's decision to reject Microsoft offer asirrational and wants to force Yahoo to return to the bargaining tablewith Microsoft.Microsoft did notelaborate on the new proposal. Microsoft said that it was not proposingto make a new bid to acquire all of Yahoo at this time, but wascontinuing to explore and pursue its options to improve and expand itsonline services and advertising businesses."Microsoftreserves the right to reconsider that alternative depending on futuredevelopments and discussions that may take place with Yahoo! ordiscussions with shareholders of Yahoo! or Mrosoft or with other thirdparties." Microsoft noted that there could be no assurance that anytransaction will result from these discussions.TheNew York Times cited "people involved in the confidential discussions"as saying that Microsoft has in mind a partnership or joint venture forsearch-related advertising.-NDTV.COM

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