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  Report: Microsoft to seek to replace Yahoo board
Time: 00:12 EST/05:12 GMT | News Source: Seattle PI | Posted By: Kenneth van Surksum

Microsoft appears to be ratcheting up the pressure in its Yahoo takeover attempt. The New York Times, citing people briefed on the matter, reports this morning that the company is preparing to launch a proxy fight to replace Yahoo's board of directors, unless Yahoo enters talks.

That has been one of the options available to Microsoft following Yahoo's statement last week that it believed Microsoft's offer undervalued the company. In an interview with The Associated Press, Bill Gates reiterated Microsoft's hard line on the possibility of raising the Yahoo bid.

"We sent them a letter and said we think that's a fair offer. There's nothing that's gone on other than us stating that," Gates said, according to the story. He added, "They should take a hard look at it."
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