Yahoo rejects joint Microsoft proposal

Yahoo rejected a proposal las Saturday to sell its search business to Microsoft Corp and hand over the remainder of the company to activist investor Carl Icahn.

Yahoo said in a statement it received the joint proposal from Microsoft and Icahn on Friday evening and was given less than 24 hours to accept. It said Microsoft and Icahn made clear they were unwilling to negotiate the fundamental terms, which include the immediate replacement of Yahoo's board and removal of top management.

The company said the "take it or leave it" deal that was offered would also preclude a potential sale of all of Yahoo "for a full and fair price, including a control premium."

"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 the statement.

"Clearly, 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," Bostock said.