Yahoo posted a public response to an open letter that the billionaire sent them saying he plans to unseat the board of Yahoo and reopen merger talks with Microsoft, which he said had been 'completely botched' by the Internet firm.

'Unfortunately, your letter reflects a significant misunderstanding of the facts about the Microsoft proposal and the diligence with which our board evaluated and responded to that proposal,' Yahoo board chairman Roy Bostock wrote in an open letter to Mr Icahn.

'We do not believe it is in the best interests of Yahoo stockholders to allow you and your hand-picked nominees to take control of Yahoo for the express purpose of trying to force a sale of Yahoo to a formerly interested buyer who has publicly stated that they have moved on.' -- AFP