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"Yahoo! has confirmed with Microsoft that it is not interested in pursuing an acquisition of all of Yahoo! at this time."

A. Yahoo asked Microsoft whether Microsoft still wanted to buy Yahoo and Microsoft said "NFW."
B. Yahoo has again told Microsoft that it--Yahoo--doesn't want to be acquired.

We assume the former. Which means that the statement is designed, in part, to blunt Carl Icahn's suggestion that a Microsoft deal is there for the taking if only Yahoo's board would go get it.

See Also: Microsoft and Yahoo Talking Again! (About Another Bad Deal For Microsoft)