Microsoft proposes alternative deal to Yahoo

Microsoft Corp said on Sunday it has proposed an alternative deal to Yahoo Inc, rather than a full acquisition, in a move that could save the web pioneer from fighting a proxy battle with financier Carl Icahn.

“Microsoft is considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo,” the company said in a statement without clarifying what that alternative might be.

Microsoft emphasized it was not proposing to make a new bid to buy all of Yahoo, after recently being rebuffed, but could reconsider.

Yahoo said in a statement later on Sunday that it continued to consider a number of strategic alternatives and was “open to pursuing any transaction which is in the best interest of our stockholders.”

The company’s board will “evaluate each of our alternatives, including any Microsoft proposal, consistent with its fiduciary duties, with a focus on maximizing stockholder value,” Yahoo said in a statement. It added that it had confirmed with Microsoft that it was not interested in “pursuing an acquisition of all of Yahoo at this time.”