Refusing to up his bid for Yahoo, Microsoft CEO Steve Ballmer will this week begin in earnest a proxy fight — a direct appeal to shareholders, bypassing Yahoo management — for control of Yahoo's board. Sources told the New York Times Ballmer views a proxy fight — which could cost as much $30 million — as as a cheap alternative to raising the bid. Even a dollar increase over Microsoft's original $31 per share would cost the company $1.4 billion. That's a cost too high, considering Yahoo's entire board — already considered fractured — comes up for reelection this year, and nominations are being taken through March 14.

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