He likes to win ... and also dance

As the US Justice Department quietly roves the antitrust status of the Yahoo/Google sponsored search liaison, CEO Steve Ballmer told conference-goers in Milan, Italy that Microsoft is "prepared to go forward without a merger."

"We are offering a lot of money," Ballmer said. "If Yahoo!'s shareholders like it, that's great."

Microsoft's takeover bid for Yahoo stands at the $44.6 billion — that is, $31 per share — it first proposed in February. In early April Ballmer passed Yahoo an ultimatum, asserting Microsoft will not raise its price — and if Yahoo does not agree to the merger by the end of this week, it will attempt to oust the board.

But all that aggression may just be smoke and mirrors.

"Sources said that Ballmer is more likely to reach out to Yahoo! through back channels with a slightly sweetened offer, provided Yang and the board agree to begin formal deal discussions," reports the New York Post.

This week Yahoo released its Q1 earnings for 2008. Revenues were three times higher than in 1Q07, but Ballmer asserted that would not change Microsoft's stance.