NEW YORK (Reuters) - Third Point LLC, a $5.7 billion hedge fund headed by activist Dan Loeb, has recently accumulated a stake of over 5 million shares in Yahoo Inc
Third Point, which held 1 million shares in Yahoo as of March 31, may build a stake of up to 10 million shares in the company, the source said.
Icahn's proxy contest, launched last week, has been aimed at pressuring Yahoo to agree to a deal to be sold to Microsoft, which broke off talks earlier this month.
Paulson & Co, another large hedge fund, disclosed last week that it recently built up a stake of 50 million shares in Yahoo and is supporting the Icahn move.
(Reporting by Dane Hamilton, editing by Gerald E. McCormick)