SUNNYVALE, California: In the wake of last weekend's council of war, Yahoo has replied to Microsoft's blustering demand that it respond to its $42 billion (€26.74bn; £21.33b) takeover bid.

The portal's reply? "We'll talk - but only if you hike the bid by a further $2bn!"

Until the weekend Yahoo had refused to offer any formal response to Microsoft's offer, lodged over two months ago, preferring to keep its powder dry whilst exploring possible defensive alliances.

But on Monday Yahoo chairman Roy Bostock and ceo Jerry Yang co-signed a letter that criticized Microsoft's aggressive negotiating style, and declared themselves resolute in their commitment to maximizing stockholder value.

Such value, the duo quantified, would necessitate upping the original bid by another $2bn – a sassy riposte to Microsoft's threat to slash its offer and go hostile.

The missive has, as yet, elicited no response from the Redmond rednecks.

Data sourced from; additional content by WARC staff