Updated from Monday, Aug. 31
NEW YORK (
) -- Activist investor Carl Icahn has reduced his stake in
, just months after the Internet giant clinched a major search partnership with
Icahn has sold 12.7 million Yahoo! shares in the last 60 days, reducing his stake below 5%, according to documents filed with the SEC.
Yahoo! shares closed at $14.61 on Monday and dipped slightly in after-hours trading, slipping 7 cents, or 0.48%, to $14.54.
The sale was apparently driven by a need to reshuffle stock portfolios. "The Reporting Persons determined to dispose of Shares that were sold in order to provide a more desired balance in their portfolios relating to tech stocks," said the SEC filing. "The Reporting Persons continue to believe in the wisdom of the Microsoft-Yahoo search transaction and fully support the performance of the Issuer's CEO, Carol Bartz."
Microsoft tried to acquire Yahoo!'s search business for $47.5 billion last year, but its bid was
turned down, much to Icahn's
Microsoft nonetheless secured a
with Yahoo! earlier this year. The two firms sealed a 10-year Internet-search partnership that is being touted as a win-win for both parties. Under the terms of the deal, Yahoo! will use Microsoft's Bing search engine and collect 88% of the advertising revenue for the first five years of the 10-year pact.