Yahoo said it had rejected an attempt by Microsoft and Carl Icahn, the activist investor, to replace its board immediately and buy its search business, condemning the joint move as an "odd and opportunistic alliance".

The internet search company said yesterday that it had repeated an offer to sell all of Yahoo to Microsoft for at least $33 per share, executing the transaction before its annual meeting on August 1. Yahoo added that it had also offered to negotiate an improved search-only sale but Microsoft had rejected both offers.