Microsoft CEO Steve Ballmer is keen to hammer out a deal with Yahoo CEO Jerry Yang before a shareholders' revolt bumps off the beleaguered search boss.

The problem is that the coup leaders want Jerry's scalp for failing to sign off on a deal which would have given Microsoft all of the company. If they win, then the shareholders will start talking turkey about giving Microsoft all of Yahoo. The problem is that Steve no longer wants it.

According to CNET sources, it is frantically trying to go back to Yahoo with a sweetened search deal before the axe on Yang falls. Several Yahoo board members remain open to discussing a possible sale of the company's search business to Microsoft.

If Microsoft's management does give the green light to its negotiators, the feeling is that it would be easier to pursue a sweetened Yahoo deal with the current board and while Yang remains CEO.

More here.