On Wednesday in the company’s annual report, Yahoo admitted that its executives have been distracted by Microsoft’s unsolicited acquisition bid, and indicated the possibility that advertisers might cut and run in light of the uncertainty. The unwelcome bid, which was ultimately rejected, might not just cause advertisers to leave, but perhaps even employees. Microsoft’s $44.6 …

Two U.S. pension funds have now sued Yahoo over their efforts to thwart off a Microsoft takeover, and instead entertain less profitable alternatives.  The lawsuit was filed on February 21, 2008 by two Detroit retirement systems that claim Yahoo is “pursing all manner of value-destructive third-party deals” while resisting Microsoft’s $44.6 billion offer. The lawsuit …