Microsoft may up the ante for Yahoo

Efforts by Microsoft and Yahoo to negotiate a merger agreement have stalled, with the two companies not even talking. But Microsoft this week could raise its bid by as much as $2 to $33 a share to get some movement. Yahoo, however, has indicated that that's not enough and wants an offer in the high 30s, according to the Wall Street Journal. If the third Microsoft bid doesn't succeed, the world's biggest software vendor may walk away or it could decide to embark on a proxy fight. Microsoft, however, is reluctant to start a hostile takeover, the Journal said. One other option according to various reports: a plan that would allow Yahoo to remain independent while signing a search advertising partnership with Google.

To read more on the battle of the titans: 
- See this Financial Post article