The Microsoft / Yahoo saga took another ugly turn over the weekend. According to Yahoo, the software giant teamed up with billionaire investor Carl Icahn with an offer to acquire the company’s flagship search engine. Yahoo once again rejected the proposal, however, noting it was only given 24 hours to decide and that the idea to replace the current board and top management at Yahoo – part of the deal’s terms – would destabilize the company.

Interestingly, Yahoo’s tone seems to have shifted from a few months back when it rejected Microsoft’s first takeover approach claiming its prospects as an independent company were bright. Now the company believes the latest offer to buy Yahoo’s search business was a bad idea because, among other things, it prevented a sale of the entire company at a later date for a “full and fair price.” What does Yahoo think is full and fair? Apparently $33 per share – a price previously rejected by the company.

Yahoo believes a whole company transaction could be negotiated and executed prior to August 1, when shareholders will vote on whether to keep the current board of directors or replace them with Icahn’s slate.