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Shockingly enough, Yahoo doesn't want a takeover

Carl Icahn's hostile board takeover bid received a cold reception from Yahoo, which tried to justify why it rejected Microsoft's lucrative acquisition offer.

Yahoo knows best, says Yahoo. The company responded to Icahn's challenge with a letter of their own, citing problems with Microsoft's offer.

Icahn complained that Yahoo's board "acted irrationally" in failing to hammer out a deal. But Yahoo chairman Roy Bostock said it was Microsoft's failings that scuttled talks.

"With Microsoft’s offer at $33 and Yahoo!’s counter-proposal at $37, Microsoft elected, within hours, to walk away from the negotiating table and informed us that they were “moving on,” having never engaged further on price or any of the key non-price deal terms," Bostock said.

"We do not believe it is in the best interests of Yahoo stockholders to allow you and your hand-picked nominees to take control of Yahoo for the express purpose of trying to force a sale of Yahoo to a formerly interested buyer who has publicly stated that they have moved on," he stated.

Bostock and Icahn differ on whether or not Yahoo's management can accomplish an increase of shareholder value. Bostock said Jerry Yang and the existing board are the best choice for this, but Icahn considers their forecasts for the company "overly optimistic."