After speculation that Carl Icahn may launch a proxy fight to replace Yahoo!'s (YHOO: sentiment, chart, options) current board of directors, the Street finally has an answer. Icahn this morning confirmed the rumors, stating the Internet giant acted "irrationally" in rejecting a bid from Microsoft (MSFT: sentiment, chart, options) .

The wealthy investor admitted he's acquired 59 million shares of YHOO over the last 10 days, and is petitioning the Federal Trade Commission to purchase up to $2.5 billion more in YHOO stock. Icahn has put together a 10-person slate of directors including himself and Dallas Mavericks owner Mark Cuban - to campaign against the current board. YHOO shareholders now have until Thursday to nominate an alternative board.

Right out of the gate this morning, the shares of YHOO have tacked on about 50 cents, or 1.9%, flirting with the $27.65 level. The stock has been rather consolidated over the past couple of months, trading between double-barreled support from its 10-month and 20-month moving averages, and resistance from its 40-month trendline.

Taking a look at the sentiment on the Street, Zacks reports that 16 of the 23 ranking analysts rate YHOO a "hold" or worse. However, Thomson Financial indicates that the average 12-month price target on the shares is $24.48 more than 10% lower than the stock's current trading price. Should the security continue to inch higher toward the 30 level, some of these bears may reconsider their positions.