Icahn Pushes Yahoo! Strategy

Updated since 11:24 AM EST

SAN FRANCISCO -- Continuing on his warpath, financier Carl Icahn sent another letter to Yahoo!(YHOO Quote - Cramer on YHOO - Stock Picks) outlining his plans for the company in the event he successfully ousts its board, including a rejection of any alternative deal with Microsoft(MSFT Quote - Cramer on MSFT - Stock Picks) that is worth less than $33 a share.

Icahn has stepped up his letter-writing efforts as he tries to convince shareholders to vote for his dissident slate of candidates to replace Yahoo!'s board at the annual meeting on Aug. 1.

Still incensed by the tech giant's failure to reach a merger agreement with Microsoft, Icahn said he would ask the new board, if elected, to invite Microsoft back to the table to discuss a deal on friendly terms. He added that Yahoo! should sell to Microsoft for $34.375 per share -- a bump from Microsoft's last offer of $33.

"To the extent Microsoft does not want to make a proposal, I will ask our new board to do a deal on search with Google(GOOG Quote - Cramer on GOOG - Stock Picks), but only if it contains termination provisions that would in no way impede a subsequent acquisition by Microsoft," Icahn said.

Yahoo! has already been talking with Google about outsourcing some of its online ads, although it is not clear how far those discussions have gotten. Microsoft has been opposed to any deal between the two companies, claiming that it would increase Google's domination on the Internet -- one big reason why the software giant pulled its $47.5 billion bid on May 3 for Yahoo!.

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