Dec. 9 (Bloomberg) -- Yahoo! Inc. is still weeks away from naming a successor to Chief Executive Officer Jerry Yang, and the Internet company has yet to narrow down a list of candidates, a person familiar with the matter said.

A replacement for Yang probably won’t be announced until January, or even later, said the person, who declined to be identified because the discussions are private. The Wall Street Journal reported yesterday that former Vodafone Group Plc CEO Arun Sarin is among the people being considered.

Yahoo is looking for a CEO who can decide on the Internet company’s next move after it rejected Microsoft Corp.’s bid of as much as $47.5 billion this year. Yahoo has talked to Time Warner Inc. about buying that company’s AOL business, and Yang has said he’s open to a new takeover offer from Microsoft.

Yahoo, based in Sunnyvale, California, dropped 1 cent to $12.19 at 4 p.m. New York time in Nasdaq Stock Market trading. The shares have declined 48 percent this year.

Yahoo spokeswoman Kim Rubey declined to comment. Sarin couldn’t be reached for comment.

An informal group of Yahoo board members is leading the search and is considering other executives before discussing selections with the rest of the board, the Journal reported. The directors have authorized checking references on a few candidates, the newspaper said.

Sarin announced his departure from Vodafone, the world’s largest mobile-phone company, in May. An Indian-born U.S. citizen, he became CEO in 2003 and helped the company expand in emerging markets through acquisitions in Turkey and India.

Microsoft Talks

Microsoft CEO Steve Ballmer said last month that all acquisition talks with Yahoo are “done,” even after Yang said he would step down. Ballmer said he continues to be interested in a partnership between Microsoft and Yahoo in the Internet-search market.

Carl Icahn, who holds a 5.5 percent Yahoo stake, told CNBC last week that he would oppose a potential bid for Yahoo by former AOL CEO Jonathan Miller. Analysts had pointed to Miller as a potential successor to Yang, who announced plans to resign last month. Yahoo must sell its Web search unit to Microsoft after rejecting an offer from the software maker earlier this year, Icahn said.

Yahoo has hired Heidrick & Struggles International Inc. to help find a replacement for Yang, who co-founded Yahoo in 1995.

To contact the reporter on this story: Crayton Harrison in Dallas at tharrison5@bloomberg.net

Last Updated: December 9, 2008 16:25 EST