Can Icahn Shift Yahoo?

9:45 AM -- I wonder if Yahoo Inc. (Nasdaq: YHOO) CEO Jerry Yang has ever had a nightmare about Carl Icahn?

If he hasn't yet, he likely will now, because it seems as if the activist investor, most recently a thorn in the side of Motorola Inc. (NYSE: MOT), might force an unwilling Yang back to the Microsoft Corp. (Nasdaq: MSFT) takeover talks table. (See Yin & Yang, Microsoft Drops Yahoo Offer, What Will Become of Yahoo?, Motorola, Icahn Agree, and Motorola Does the Splits.)

Icahn has reportedly built a 3.6 percent holding in Yahoo and may stage something of a board level coup.

Jefferies & Company Inc. analyst Youssef Squali believes the chances that Icahn will attempt to oust some or all of Yahoo's current board "are high," and that Yang may react in a number of ways, such as reigniting merger talks with AOL Inc. (NYSE: AOL) or MySpace .

Light Reading has previously reported on the potential impact of a Microsoft/Yahoo combo. (See Yahoo, Microsoft Merger Could Aid Telcos.)

— Ray Le Maistre, International News Editor, Light Reading

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