Investor: Microsoft, Corner Yahoo! Now

SAN FRANCISCO -- With shares of Yahoo!(YHOO Quote) continuing a staggering fall, one investor is now urging Microsoft(MSFT Quote) to use it as an entry point for another acquisition bid.

Mithras Capital, which owns 1.9 million shares of Yahoo! - or about .14% of the company -- proposes in a letter to Microsoft and Yahoo! that the Redmond-based software company purchase the Internet giant for $22 a share. That's far lower than the $33 that Microsoft had offered earlier this year but still an 81% premium over Yahoo!'s current stock price.

Yahoo! has fallen below its five-year low in the last couple of days as the market continues to take a beating amid unrelenting investor fears, along with analysts' concerns that the company will be hurt by weakening display advertising spending. On Friday, the stock was down 3.9% to $12.16 in intra-day trading . ...