Icahn Eyeing Proxy Battle for Yahoo

Billionaire Carl Icahn, fresh off his successful battle to reshuffle Motorola’s board, may launch a proxy fight for control of Yahoo after buying some 50 million shares of Yahoo since Microsoft’s failed takeover bid, reports the Wall Street Journal. The deadline for board nominations is Thursday. Icahn may be looking to use his leverage to push Yahoo back toward Microsoft, the Journal notes.

The news sparked a surge in Yahoo shares, driving the price up 5%. So far, there’s no evidence Microsoft would consider coming back to the bargaining table; Microsoft withdrew an offer to buy the Internet portal May 3 after Yahoo demanded more than the $33 per share Microsoft was offering. Icahn's shares, valued at $1.3 billion, represent about 3.5% of Yahoo. (More Yahoo stories.)