Yahoo attempts to quell shareholder rebellion

The drama continues...

7 July 2008 14:12 GMT / By Katie Scott

Are the talks between Yahoo on or off? Is there anything to the rumours that both parties are consulting with Time Warner's AOL?

So many questions and yet more rumours today.

Yahoo is apparently currently trying to come up with an appeasement package for rebel shareholder, and billionaire investor Carl Icahn, who is going to attempt to oust Yahoo's board on 1 August.

"Sources" are reporting that Yahoo may offer Icahn two board seats, but Icahn has openly said that he wants a minimum of four.

And he has also hinted that he may be out to get rid of Yahoo co-founder and CEO Jerry Yang, before restarting talks with Microsoft in earnest.

But both Yang and Icahn will be aware that their continuing squabble is going to affect Yahoo's shares, which are already slumping as investors get nervous.

Added to this, according to web reports, both Yahoo and Microsoft have been talking with AOL about a possible hook-up - something that has been on the cards before but then the rumours went quiet.

Things, it seems, are getting a bit complicated to say the least.