NEW YORK (Reuters) - Investor Carl Icahn on Friday told Yahoo Inc that it should offer to sell the company to Microsoft Corp for $34.375 per share, the latest volley in an acrimonious war of words.

In his latest letter to Roy Bostock, Yahoo's chairman, Icahn said that if Microsoft doesn't accept the offer "in a friendly and cooperative transaction," he would push the Internet company to do a deal with Google Inc.

Icahn, who is running a dissident board slate for election at Yahoo's annual meeting on August 1, reiterated his previous demand that Yahoo cancel a "change of control" severance plan that awards accelerated benefits to the bulk of Yahoo's staff.