On Saturday, Yahoo has rejected a “ludicrous” deal with Microsoft orchestrated by corporate raider Carl Icahn, who is bent on overthrowing the struggling Internet search pioneer’s board. Carl Icahn’s “take it or leave it” proposal to Yahoo on Friday called for a massive restructuring of the California firm and the sale of its online search business to the U.S. software colossus.

Roy Bostock, a Yahoo board chairperson said that that odd and opportunistic alliance of Carl Icahn and Microsoft has anything but the interests of Yahoo’s stockholders in mind. Moreover, Bostock said that Carl Icahn Microsoft gave the Yahoo board less than 24 hours to decide on the offer that was non-negotiable.

Carl Icahn, a U.S. billionaire, who has amassed a stake in Yahoo, and accuses the board of botching earlier takeover talks with Microsoft, has been trying to convince shareholders to back his slate at a vote during an August 1 annual meeting.

According to Bostock, Carl Icahn and Microsoft are trying to dismantle the company and deliver Yahoo’s search business to Microsoft on terms that would be disadvantageous to Yahoo stockholders. Moreover, Yahoo has prepared to let its stockholders, not Microsoft and Carl Icahn, decide what is in their best interests and the company still look forward to the upcoming vote.

Microsoft offered to buy Yahoo for US$44.6 billion in stock and cash on January 31. However, withdrew its offer on May 3, saying Yahoo refused to budge despite the software giant upping its offer to nearly US$50 billion. Then, Yahoo tried to revive talks with Microsoft, with Yahoo rejecting an offer to buy only its search business and Microsoft saying it was no longer interested in buying all of Yahoo.

Microsoft had wanted Yahoo to better battle Google that claims the dragon’s share of the multi-billion-dollar Internet search and advertising market. However, after ending talks with Microsoft, Yahoo announced an alliance with rival Google to put the Internet search king’s expertise to work pumping money from its floundering rival’s online advertising. Moreover, Yahoo predicts the Google alliance will boost its revenues by 250 to 450 million dollars in its first year. However, the plan is being reviewed by the U.S. regulators.

Bostock said that while spurning the Carl Icahn-Microsoft offer Yahoo made it clear it is open to selling the entire company to Microsoft for at least US$33/share, the offer that began the failed courtship. Finally, Yahoo’s stock price finished the Friday trading day on Wall Street at US$23.57/share.