Earlier this week, the company indicated the price would be between $34-$38 a share, with about 421 million shares up for sale. This would represent one of the highest value share sales, or initial public offerings (IPOs) in US history.

At a time when women’s issues have become a political football in the national arena, many states have been chipping away at funds aimed at supporting working mothers and families, even as federal subsidies are drying up and the cost of child care is climbing.

The auction comes amid fresh fears contagion from Greece could trigger a Spanish banking crisis. Spain's prime minister says borrowing costs could become "astronomical". "All these measures are to get out of the hole we find ourselves in," he said on Wednesday. Spain is in recession and unemployment is rising.

Meanwhile, the French economy recorded zero growth in the first quarter, after growth of 0.1% at the end of 2012. Figures released later on Tuesday are expected to show that the eurozone as a whole has returned to recession.

Yahoo has already acknowledged that Mr Thompson, who took up his post in January, does not have a computer science degree. Just last month, the company, which is based in Sunnyvale, announced plans to make 2,000 employees redundant.