Microsoft issued a statement last night asserting that it was still happy to discuss an "alternative transaction" for part of Yahoo.

The company also restated that it was not interested in buying Yahoo as a whole.

"In the weeks since Microsoft withdrew its offer to acquire Yahoo, the two companies have continued to discuss an alternative transaction that Microsoft believes would have delivered in excess of $33 per share to Yahoo shareholders, " the company said.

"This partnership would ensure healthy competition in the marketplace, providing greater choice and innovation for advertisers, publishers and consumers.

"As stated on 3 May and reiterated on 18 May, Microsoft was not interested in rebidding for all of Yahoo. Our alternative transaction remains available for discussion."

The statement validates some of the claims made by billionaire corporate raider Carl Icahn, who is embroiled in a public spat with Yahoo chairman Roy Bostock.

Icahn recently stepped up the attack over Bostock's defence of the so called 'poison pill' strategy dreamed up to dissuade Microsoft from acquiring Yahoo.

In the event of a change of control, the 'poison pill' would allegedly encourage an employee not to work as hard in the hopes of cashing in on a robust severance package that awards up to two years salary and benefits.