Voicing disappointment over Yahoo. Inc.'s refusal of Microsoft takeover bid, billionaire investor Carl Icahn on Thursday launched a bid for control of the internet giant.

The Time Square Yahoo sign is seen in New York April 7, 2008. Inc.'s refusal of Microsoft takeover bid, billionaire investor Carl Icahn on Thursday launched a bid for control of the internet giant. (Xinhua/Reuters File Photo)

Icahn said he took the move because Yahoo's board "completely botched" takeover talks with Microsoft Corp.

In a letter to Yahoo Chairman Roy Bostock, Icahn said he had snapped up 59 million Yahoo shares and was seeking permission from the Securities and Exchange Commission to amass up to 2.5 billion dollars in Yahoo's stock. Yahoo's market value was nearly 38 billion dollars this morning.

"It is unconscionable that you have not allowed your shareholders to choose to accept an offer that represented a 72-percent premium over Yahoo's closing price of 19.18 dollars on the day before the initial Microsoft offer," Icahn wrote.

"I and many of your shareholders strongly believe that a combination between Yahoo and Microsoft would form a dynamic company and more importantly would be a force strong enough to compete with Google on the Internet."

He added that he hoped Yahoo would listen to its shareholders and "move expeditiously" to close a deal with Microsoft, which earlier this month withdrew a 47.5-billion-dollar offer for Yahoo after they failed to agree on a price.

Sources close to Icahn said the billionaire had nominated a 12-people slate to unseat Yahoo's board of directors, a move that surprised some major shareholders, who had been told by Icahn's allies just a day before that he intended to put forward only a few names to serve as agitators.

The candidates include Icahn, former Viacom Inc. Chief Executive Frank Biondi Jr., Dallas Mavericks owner Mark Cuban and New Line Cinema co-chairman Robert Shaye. Yahoo didn't immediately comment. Its annual meeting is scheduled for July 3.

Yahoo shares gained 50 cents to 27.64 dollars in early trading on Thursday. They had tumbled to 24.37 dollars the first trading day after Microsoft walked away.

LookAtVietnam/Xinhuanet