ArsTechnica writes: "The actions taken by Yahoo's management when faced with a buyout bid from Microsoft have attracted both a lawsuit and the attention of investor Carl Icahn, famed for his ability to launch proxy fights and compel mergers. Now, the two approaches are being united, as Icahn has published a series of open letters to Yahoo's board in which he repeats many of the accusations made in the lawsuit. Yahoo has responded with letters of its own, signaling a war of words that may continue until the company's shareholders meet in August and determine the fate of the existing board.
Icahn has placed a lot of money where his mouth is. Although he owned no shares of Yahoo as recently as April, he now holds over four percent of the company's outstanding shares. As such, he has a pretty clear interest in seeing the company either perform well enough to raise its stock price, or receive a buyout offer at a substantial premium over its current price. Icahn views the current management, which has overseen a decline in the company's fortunes and rejected Microsoft's buyout offer, a barrier to either of these happening.'