Activist investor Carl Icahn wants Yahoo to tell Microsoft it's willing to be sold for $49.5 billion, about $2 billion above Microsoft's...

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SAN FRANCISCO — Activist investor Carl Icahn wants Yahoo to tell Microsoft it’s willing to be sold for $49.5 billion, about $2 billion above Microsoft’s last offer for the Internet pioneer.

Icahn recommended the sales price, which works out to $34.375 a share, in a letter he sent Friday to Yahoo Chairman Roy Bostock. It is the billionaire’s latest salvo in a campaign to replace Yahoo’s board and fire CEO Jerry Yang unless the company works out a deal with Microsoft before Yahoo’s annual shareholders meeting Aug. 1.

Microsoft withdrew an oral offer of $47.5 billion, or $33 a share, last month after Yang asked for $37 per share.

Yahoo said declaring an acceptable sales price for the company would be “ill-advised.”

Microsoft declined comment.

Yahoo shares slipped a penny to $26.35 in midday trading, while Microsoft shares fell 25 cents to $28.05.