A major Yahoo Inc shareholder, Legg Mason, is ready to back Yahoo's effort to stay independent if Microsoft Corp lowers its buyout offer, the Wall Street Journal said, citing an interview with portfolio manager Bill Miller.

"The problem is Microsoft blundered with the letter this weekend," Miller told the Journal, referring to Microsoft Chief Executive Steve Ballmer's letter to Yahoo giving it three weeks to evaluate the $42 billion takeover offer, after which it threatened to resort to a proxy battle.

Shareholder Backs Yahoo In Microsoft Bid [uk.reuters.com]