Yesterday Yahoo told the world that it had rejected yet another Microsoft advance and also took a rather large pop at the computing giant.

Yahoo chairman Roy Bostock wrote in a statement that an offer his company had had just 24 hours to consider had been rejected.

Allegedly the deal on the table had been for Microsoft to buy Yahoo's search business and the rest of the company to have gone to billionaire investor Carl Icahn, who is now also a major Yahoo shareholder.

Bostock hit out saying: "This odd and opportunistic alliance of Microsoft and Carl Icahn has anything but the interests of Yahoo's stockholders in mind".

But now Microsoft has responded and says it is setting the record straight.

In a statement, it declares: "On the evening of 12 July, Yahoo released a statement relating to recent discussions involving Yahoo, Microsoft and Carl Icahn".

"Microsoft believes the statement contains inaccuracies that need to be corrected."

"Among other things, the enhanced proposal for an alternate search transaction that we submitted late Friday was submitted at the request of Yahoo chairman Roy Bostock as a result of apparent attempts by Mr Icahn to have Microsoft and Yahoo engage on a search transaction on terms Mr Icahn believed Microsoft would be willing to accept and which Microsoft understands Mr Icahn had discussed with Yahoo."

"Specifically, on Thursday afternoon, 10 July, Mr Bostock called Steve Ballmer’s office to arrange a call. On that subsequent call, Mr. Bostock told Mr. Ballmer that 'with substantial guarantees on the table and an increase in the TAC (traffic acquisition cost) rate, there are the pillars of a search only deal to be done'."

"Mr Bostock encouraged Mr Ballmer to submit a new proposal to Yahoo for a search-only deal reflecting these terms."

"After considering Yahoo!’s request and taking into account Yahoo!’s previous feedback about our prior search proposal, Microsoft determined late Friday to propose an enhanced search transaction. This proposal included significant revenue guarantees, higher TAC rates, an equity investment and an option for Yahoo! to extend the agreement over a 10-year period."

"Microsoft’s proposal did not include changes to Yahoo!’s governance."

"At the time Microsoft submitted its enhanced proposal, Microsoft asked that Yahoo confirm whether it would agree that the enhancements were sufficient to form the basis for the parties to engage in negotiations over the weekend on a letter of intent and more detailed term sheets."

"This discussion has been mischaracterised as a take it or leave it ultimatum, rather than a timetable in order to move forward to intensive negotiations."

"Yahoo informed Microsoft on Saturday that it had rejected the proposal."

Curiouser and curiouser.