Yahoo CEO says still open to Microsoft talks

By Michele Gershberg

NEW YORK (Reuters) - Yahoo chief Jerry Yang was set to meet staff on Tuesday after signalling a more open stance towards a takeover by Microsoft.

Yang told Reuters in an interview on Monday that he had "mixed feelings" about events at the weekend, when talks broke down. Investors showed their disappointment over the breakup of negotiations by sending Yahoo shares down 15 percent on Monday.

Asked if Yahoo would still leave a door open for Microsoft to return, Yang said: "If they have anything new to say, we would be open. ... I am more than willing to listen."

Yang said it had been Microsoft that ended the discussions.

"We were negotiating a way to find common ground and then on Saturday they chose to walk away," said the 39-year-old co-founder of the pioneering Internet company. "They started it and they walked away."

Yang, who owns about 4 percent of the company, was expected to meet with employees on Tuesday in an effort to reassure them after the Microsoft talks ended.

Yahoo shares rose 4.7 percent in Frankfurt on Tuesday.

After three months of negotiations, Microsoft CEO Steve Ballmer raised his offer for Yahoo to $33 per share from an initial $31, for a total deal value of about $47.5 billion (24.1 billion pounds).