(19 May 2008 9:30 pm)

MUMBAI: Microsoft is discussing an alternative transaction with Yahoo, although the multinational did not disclose any related details.

A $47.5 billion bid for Yahoo failed a fortnight ago as the internet firm wanted a higher offer.

Any deal between the companies would result in a serious challenge to Google's dominance.

Microsoft and Yahoo may form a partnership for search-related advertising to take on Google.