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Yahoo shares dive on Google rumours

NEW YORK (Bloomberg) - Yahoo! Inc., fighting investor Carl Icahn for control of the board, fell 3.7 percent after a technology blog suggested the Internet company may announce a partnership on web-search advertising with Google Inc.

The TechCrunch blog said that Yahoo and Google, owner of the world's most popular Internet search engine, plan make an announcement today.

The blog, without citing anyone, said the news probably is tied to a search-marketing partnership between the two companies.

Yahoo dropped 96 cents to $25.19 at 2.21pm New York time in Nasdaq Stock Market trading.

Yahoo, based in Sunnyvale, California, rejected a $47.5 billion takeover offer from Microsoft Corp. last month, prompting Mr. Icahn to threaten to oust the board.