Updated from Sunday, May 18
A new proposed deal by
announced over the weekend prompted shares of the Internet company to take a positive turn in premarket trading Monday.
This time, however, the Redmond, Wash.-based software giant isn't looking for a full-out acquisition. Early this month, Microsoft scrapped its plans to acquire the Internet search outfit after Yahoo! CEO Jerry Yang rejected a sweetened bid. Since then, however, activist investor Carl Icahn has launched a proxy fight to replace Yahoo!'s board in an effort to get Yahoo! to restart negotiations with Microsoft.
In a statement Sunday
, Microsoft said it has presented to Yahoo! "an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo!."
Microsoft added that although it is not proposing to make a new bid for all of Yahoo!, it "reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties."
Icahn has said that many Yahoo! shareholders are dissatisfied that the company's management didn't accept Microsoft's final $33-per-share offer, contending that the offer is far superior to Yahoo!'s prospects on its own.
Yahoo! shares were trading up 20 cents, or 1%, at $27.94 in recent premarket trading Monday, while Microsoft was essentially unchanged.
This article was written by a staff member of TheStreet.com.