Icahn considering proxy campaign at Yahoo - sources

NEW YORK (Reuters) Billionaire investor Carl Icahn is considering running a proxy campaign to elect new board members at Yahoo! Inc after the company failed to forge a deal to merge with Microsoft Corp, sources close to the matter said on Tuesday.

The veteran investor has built up a stake in Yahoo in the last week and would run a slate in an effort to force the company back to the negotiating table with Microsoft, the sources said, asking for anonymity because the decision to go ahead with the move has not been made yet.

It is unlikely that Icahn, a veteran of numerous proxy battles, will join with other hedge funds in the campaign, the sources said. A decision to run a proxy slate this year must be made this week.