Capital Research raises Yahoo stake

(Adds details on Cap Re, Yahoo-Microsoft)

SAN FRANCISCO Oct 10 (Reuters) - Yahoo Inc's (YHOO.O) second-largest shareholder has raised its stake in the Internet company to 10.1 percent, according to a regulatory filing.

Capital Research Global Investors now owns 140.2 million Yahoo shares, up from nearly 120 million shares, or 8.6 percent, it owned at the end of June 2008.

Cap Re's fund manager Gordon Crawford had said in May he was "extremely angry" at Yahoo Chief Executive Jerry Yang over the breakdown of buyout talks with Microsoft Corp (MSFT.O).

Capital Group's two equity investment funds, Capital World Investors (Yahoo's largest shareholder) and Capital Research, now own more than 22 percent of the company collectively.

(Reporting by Anupreeta Das; Editing by Phil Berlowitz)