Yahoo Says Google Owes It More Shares

Yahoo Inc. is demanding a larger stake in Google Inc. in a dispute over a 2000 contract under which Google's technology was featured on Yahoo's home page.

Google said in a filing with the Securities and Exchange Commission that it was in talks to settle a dispute over a grant of options it issued with an unidentified company. A Yahoo spokeswoman confirmed that her company was the one referred to in the Google filing.

The agreement benefited Google by exposing users of Yahoo, more than 145 million people a month at the time, to the smaller company. Now Yahoo stands to benefit from Google's plan for an initial public offering.

Yahoo shares rose $1.79 to $30 on Nasdaq.