Icahn to Yang: Sell to Microsoft or leave

SAN FRANCISCO - Yahoo Inc. Chief Executive Jerry Yang spent months fending off Microsoft Corp.'s unsolicited takeover bid. Now he may only have a few weeks to persuade the software maker to revive its last offer of $47.5 billion, or risk being fired in a shareholder mutiny led by activist investor Carl Icahn.

Spurred on by outraged shareholders, Icahn notified Yahoo on Thursday that he will lead a revolt to oust Yang and the rest of the Internet company's board unless they renew negotiations with Microsoft that fell apart May 3 when the two sides couldn't agree on a price.

In a response late Thursday, Yahoo Chairman Roy Bostock signaled that the Sunnyvale-based company is prepared to battle the New York financier.

Bostock criticized Icahn for having a 'significant misunderstanding of the facts' about Microsoft's offer and the Yahoo board's response. He also emphasized that Yahoo remains open to a sale 'if it offers our stockholders full and certain value.'