Page last updated at 21:41 GMT, Tuesday, 22 July 2008 22:41 UK

Disappointing results from Yahoo

Yahoo building and flag
It is the latest set of disappointing results from Yahoo

Internet company Yahoo has reported worse-than-expected results for a three-month period in which it fought off a takeover approach from Microsoft.

Net income fell 18.6% to $131m (65.8m) in the three months to the end of June.

Microsoft offered $31 a share for Yahoo in February but Yahoo has said it will only consider an offer of $37 a share.

The results came the day after Yahoo reached an agreement with Carl Icahn to stop him trying to replace its entire board at next month's annual meeting.

Mr Icahn and two of his appointees have been given seats on an enlarged Yahoo board in return for agreeing to withdraw his slate from election at the 1 August annual meeting.

Mr Icahn, who owns about 5% of Yahoo, felt that the search engine company should have accepted Microsoft's $31 a share offer - its shares closed on Tuesday at $21.58.

Another set of disappointing figures will increase pressure on Yahoo to reach a deal.

"The results, I would say, were relatively mediocre," said Ryan Jacob, a portfolio manager from Jacob Internet Fund.

"Given concerns about a slowdown in the display ad market, expectations were very low."

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