Icahn says he would work to sell Yahoo

Activist investor's letter to the search engine's board bluntly states his intention to sell the company to Microsoft.

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June 6, 2008: 11:10 AM EDT

NEW YORK (AP) -- Carl Icahn would work to sell Yahoo Inc. to Microsoft Corp. if his firm took over control of the Internet company, the investor said in a letter to Yahoo's board Friday.

Icahn has been trying to get a slate of directors he supports elected to the Yahoo board. The letter was the latest in a very public squabble between the investor and Chairman Roy Bostock.

Icahn also said he would hire a "talented and experienced" chief executive to replace Jerry Yang, who took over control of the company after the board forced out Terry Semel.

The investor also said he would work to do away with an employee retention plan that he says would deter any potential bidder from trying to acquire the company.

The plan would add about $2.4 billion to any acquisition price.

Yahoo (YHOO, Fortune 500) shares fell 13 cents to $25.23 early Friday. Microsoft (MSFT, Fortune 500) had offered to pay $33 per share, or about $47.5 billion, for the company.

Yahoo - Icahn war of words heats up

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