Yahoo's shares plummeted 15 per cent yesterday, following Microsoft's decision to scrap its takeover plans.

Last week the software giant raised its offer to $47.5bn (£24.1bn) or $33 per share, up from the original $44.6bn bid made in February this year. Yahoo chief executive Jerry Yang attempted to hold out for an increased offer of $37 per share, but Microsoft declined and publicly announced its withdrawal from further discussions.

But a future deal is still possible if Microsoft changes its mind, said Yang in an interview with Reuters.

"We were negotiating a way to find common ground and then on Saturday they chose to walk away. They started it and they walked away," he said.

"If they have anything new to say, we would be open. I am more than willing to listen."

US media sources are reporting unrest among Yahoo's investors. Gordon Crawford, portfolio manager for Capital Research Global Investors, told the LA Times that he would have been content with an offer of $34 per share.

"I am extremely angry at Jerry Yang and at the so-called independent board," he said.