Billionaire Icahn thinks the Yahoo board should be removed, however, Yahoo has responded saying that it would have accepted such a merger if it had been in the best interests of its investors.
Yahoo explained in a statement by the company: “To that end, Yahoo has engaged in extensive discussions with Microsoft over the last several months, culminating in Microsoft's decision not to pursue an acquisition of Yahoo."
Mr Icahn claimed the details of the sabotage were revealed in documents released by a court dealing with a shareholder lawsuit.
Yahoo had to postpone its annual general meeting in May because Mr Icahn had threatened to unseat the board of the company.
