The politics of mergersMore VideosSAN FRANCISCO (AP) -- One of Yahoo Inc.'s disgruntled shareholders is urging Microsoft Corp. to make a more compelling case for its bid to buy the Internet pioneer's search operations - a proposal that was trumped by an advertising deal Yahoo reached with Google Inc.Mithras Capital, which owns 1.7 million Yahoo (YHOO, Fortune 500) shares, made the plea to Microsoft (MSFT, Fortune 500) Chief Executive Steve Ballmer in a letter sent Thursday.
If Microsoft can more clearly explain why its alternative is more lucrative than the Google (GOOG, Fortune 500) deal, Mithras believes a majority of Yahoo shareholders will support activist investor Carl Icahn's attempt to replace Yahoo's board at the Sunnyvale, Calif.-based company's Aug. 1 annual meeting.
Icahn's board then could back out of the Google partnership and accept Microsoft's competing offer, wrote Mithras partner Mark Nelson. Mithras previously had thrown its support behind Icahn's slate of nine candidates.
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