• Los Angeles Times, Wednesday, May 7, 2008 11:30 AM

The Los Angeles Times is reporting that Yahoo shareholders are so mad about failing to secure a Microsoft deal that they now want to launch a proxy fight to oust Jerry Yang and the Yahoo board themselves. Shareholders hope the move would convince Microsoft to return to the bargaining table. The rumors sent Yahoo shares up 6% in Tuesday trading.

However, organizing a proxy fight takes time, something opposing shareholders don't have now that Yahoo has set its annual shareholder meeting for July 3. "People have talked about it, but nobody I know of has actually committed to doing it," one major shareholder said "It's daunting to pull it off in such a limited amount of time. And you don't know if Microsoft will be there."

Meanwhile, there are conflicting reports in the blogosphere about what the Yahoo board will do to respond to angry shareholders. TechCrunch said the board has authorized Yahoo Chairman Roy Bostock to try and reopen negotiations with Microsoft-although the software giant, in separate reports, has denied any interest in reopening talks. Kara Swisher also calls the TC rumors untrue; adding that talk of Yang's ousting is premature.

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