engine - 1:15 pm on Jun 3, 2008 (gmt 0)

Yahoo Inc executives dismissed a search-advertising deal with Google due to antitrust concerns, one day before Microsoft Corp made its takeover offer earlier this year, according to court documents made public on Monday. The position came to light in a complaint filed by attorneys representing two Michigan pension funds in a shareholder lawsuit that aims to revoke Yahoo takeover defenses and press the company to renew merger talks with Microsoft. "We are focused on long-term value creation rather than short-term gains," said a Yahoo document prepared for Yahoo executives ahead of an "all hands" internal meeting on January 30 -- the day before Microsoft made its merger offer.

Yahoo Dismissed Google Deal Before Microsoft's Offer [uk.reuters.com]