Moves by Yahoo Inc. and Microsoft Corp. punctuated a fairly quiet week in tech, as the Internet icon postponed its annual meeting for the second time and the world's largest software company began luring search traffic with cash rebates.
Yahoo postponed its meeting on Thursday, which had been slated for July 3, delaying a proxy contest with activist investor Carl Icahn for control of its board. Icahn, who like many shareholders is upset with the company's handling of Microsoft's last offer of $47.5 billion for the company, has nominated a slate of candidates to replace Yahoo's current directors.
The delay gives Yahoo more time to put together a defense against Icahn or negotiate a sale to or alternate deal with Microsoft.
According to a filing with the Securities and Exchange Commission, Yahoo is pushing the meeting back to an undetermined date in late July.
In March, Yahoo postponed its annual meeting, gaining more time to explore alternatives to Microsoft's buyout bid. That bid was withdrawn this month when the two parties could not agree on a purchase price.
Also this week, Microsoft began showing how it intends to take on Google Inc. in the wake of its failed bid for Yahoo, as it started offering cash rebates to people making purchases after using its search engine.
In a plan revealed Wednesday, online shoppers who sign up for an account and buy items they find with Microsoft's Live Search cash back Web site will get a percentage of the purchase price deposited into their account.
When a shopper's account total climbs to $5, they can redeem the cash through eBay Inc.'s PayPal.
Lehman Brothers analyst Doug Anmuth said in a client note that while he initially dismissed the plan as "another attempt to buy search share," he now thinks it "could gain some traction in the near term-and even potentially take a modest amount of share."
Still, over time he thinks users will go for the search engine with the best user experience, relevant search results and best product innovation _ which he thinks is Google.
In telecom, a Canadian court ruled Wednesday that BCE Inc.'s $35 billion sale to Ontario Teachers Pension fund and others was unfair to bondholders, threatening what would be the largest-ever leveraged buyout.
BCE, the parent of Bell Canada is the country's largest telecommunications company. The company's shares tumbled on the news, and were set to close the week down more than 13 percent. BCE is appealing the ruling by the Quebec Court of Appeal and the pension fund said it remains committed to the deal.
On Tuesday, Hewlett-Packard Co. posted a 16 percent jump in its fiscal second-quarter profit _ which came as no surprise since the company had already pre-announced its earnings last week. HP, the world's largest technology company by revenue, is buying technology services provider Electronic Data Systems Corp. for $13.2 billion in a deal announced last week as well.
IN CASE YOU MISSED IT: Tessera Technologies Inc. said Friday it settled a patent suit with International Products Sourcing Group _ one of 14 companies against which it filed a legal action through the International Trade Commission.
Under the settlement, IPSG's parent company, Micro Electronics Inc., agreed to pay royalties on past and future sales of products that use Tessera technology.
Cowen & Co. analyst Seth Raj called the settlement "tiny" but said it shows negotiations are proceeding with other companies in the case.
COMING UP: Computer maker Dell Inc. reports fiscal first-quarter earnings on Thursday. Analysts, on average, are predicting a profit of 33 cents per share, on sales of $15.66 billion, according to a poll by Thomson Financial.
Digital video recorder maker TiVo Inc. reports fiscal first-quarter results on Wednesday. Analysts expect a loss of a penny per share, on sales of $55.6 million.
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Compiled by AP Business Writers Rachel Metz and Barbara Ortutay in New York.
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