NEW YORK (Reuters) - Microsoft Corp. has stepped up its pursuit of a deal to buy Yahoo Inc., two newspapers reported on Friday, as the two companies reenter talks to strike a deal amid huge growth from rival Google Inc.

Yahoo shares jumped 14.6 percent to $32.20 in electronic trading on Friday, while Microsoft shares fell 1.4 percent to $30.53.

The two companies have held informal deal talks over the years. But the latest approach comes as Microsoft seeks to ink a deal in the wake of Google’s expansion.

“It’s been talked about for a long time, ever since Google came into the picture. I can’t imagine a more perfect deal,” said Peter Lobravico, vice president of risk arbitrage sales/trading at brokerage Wall Street Access. “You can’t find a stronger buyer than Microsoft and while it would spur a lot of political and regulatory noise, everyone knows in the end that the deal would go through.”

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