I guess we cannot report the Yahoo Microsoft merger talks fast enough. Reuter today reports that, Microsoft Corp (MSFT.O: Quote, Profile, Research) said on Sunday it has proposed an alternative deal to Yahoo Inc (YHOO.O: Quote, Profile, Research), rather than a full acquisition, in a move that could save the web pioneer from fighting a proxy battle with financier Carl Icahn...

"Microsoft is considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo," the company said in a statement without clarifying what that alternative might be. Microsoft emphasized it was not proposing to make a new bid to buy all of Yahoo, after recently being rebuffed, but could reconsider...

Yahoo said in a statement later on Sunday that it continued to consider a number of strategic alternatives and was "open to pursuing any transaction which is in the best interest of our stockholders". Read the complete article here.

Source: Thompson Reuters Article - May 18th, 2008