BUSINESS
10/05/2011 04:15 EDT | Updated 12/05/2011 05:12 EST

Yahoo shares up after report that software company Microsoft considering bid

TORONTO - Shares of Yahoo Inc. are up 10 per cent amid reports that Microsoft is considering another bid for the company.

Reuters news agency cites sources close to the situation as saying that Microsoft, which made an unsuccessful bid for Yahoo in 2008, may be among several companies taking a look at Yahoo.

It quoted an unidentified high-ranking Microsoft executive as saying no decision has as yet been made as executives at the software giant are divided on the issue.

Yahoo has been struggling in recent years, with the ongoing problems recently prompting the company's board to fire CEO Carol Bartz, who negotiated an Internet search partnership with Microsoft last year.

Since Bartz's departure last week, there has been mounting speculation that Yahoo might put itself up for sale rather than hire a permanent CEO.

Microsoft had offered US$33 per share in 2008, but withdrew the bid after Yahoo asked for more money. This afternoon, Yahoo shares were up $1.48 at US$15.94 on the Nasdaq.