Microsoft, Yahoo could reach weekend deal -source

LOS ANGELES, May 2 (Reuters) - Microsoft Corp (MSFT.O) and Yahoo Inc (YHOO.O) could reach a takeover deal as soon as this weekend, after Microsoft indicated a willingness to raise its offer a few dollars per share from its original $31 bid, a person familiar with Microsoft's thinking said on Friday.

But talks are at a sensitive stage and a deal is not certain, added the person, who was not authorized to speak publicly on the talks. (Reporting by Daisuke Wakabayashi, writing by Peter Henderson; Editing Braden Reddall)