Microsoft ready to start fresh talks with Yahoo

Microsoft has said that it is open to the possibility of restarting acquisition discussions with Yahoo if the troubled search firm is prepared to elect a new board at its 1 August stockholder meeting.

Amid a takeover bid that has produced wide-ranging speculation from media and industry alike, Microsoft called an end to talks in early May which could have seen a deal tabled worth $47.5bn.

Microsoft has reportedly issued a statement declaring its renewed interest after billionaire financier Carl Icahn, who holds a 4% stake in Yahoo, made it public that he had "spoken frequently" to Microsoft CEO Steve Ballmer in an attempt to allay Ballmer's fears over board mismanagement.

For its own part, while Yahoo's response has shown willingness to reopen talks, the company has issued statements specifying that it "feels strongly" that any deal negotiated should be in the best interests of Yahoo stockholders.

The deal still awaits regulatory approval - a process that could take at least nine months.