Just like in Beauty pageants, from 40 or so candidates, Microsoft is said to have narrowed down its final list to just five candidates.  If reports are to be believed, the software giant’s special committee, along with Heidrick & Struggles International Inc., is closing in on its man. But this doesn’t mean that the company is close to naming current CEO Steve Ballmer’s replacement any time soon, as deliberations could still take months.

When Ballmer announced his retirement back in August, people were quick to jump to conclusions that whoever replaced him would be an internal hire, making Executive VP Tony Bates, who joined Microsoft when it acquired Skype and now serves as the head of business development and evangelism for the company; and Executive VP Satya Nadella, who served different positions in the company over the years and is currently the president of the Server and Tools Business, the two leading candidates for the position.

But when Microsoft announced that it will acquire Nokia’s phone business and that Nokia CEO Stephen Elop would be returning to Microsoft to head its mobile business, many were speculatinf that he will be the next CEO instead.

However, as the weeks passed more speculation surfaced as to who the special committee is eyeing to lead the company. Later reports stated that Ford CEO Alan Mulally was at the forefront of the race, while others said that Yahoo! CEO Marissa Mayer might also be a viable choice.

Question now is, if Microsoft is down to five candidates, who are they?

A report from Reuters claims to have identified who they are. According to its sources, the Top 5 candidates are Mulally, Elop, Bates, and Nadella.  Of course that’s only four, as the fifth person remains unnamed but sources believe that it is someone from Microsoft itaelf.  Even so, others suggest that the fifth candidate could in fact be Computer Sciences Corp CEO Mike Lawrie as the special team is looking at executives from a wide range of sectors, including life sciences and consumer.

Microsoft and Nokia declined to comment, while Ford spokesman Jay Cooney stated that, “There is no change from what we announced last November. Alan remains fully focused on continuing to make progress on our One Ford plan. We do not engage in speculation.”

The sources also claimed that the special committee has been speaking with investors with regards to their concerns over the company’s next CEO.  Aside from the change in leadership, some investors suggested that Bill Gates should step down as Chairman of the board of Microsoft as his presence in the company only hinders it from moving forward.  They also want to block Ballmer’s re-election to the board, stating that his presence, as well as Gates, will greatly influence the company.

To keep the peace, and to appease investors, Microsoft is said to have offered activist shareholder ValueAct Capital Management a board seat back in August, and that the investors will be given the same access as the board to the final five candidates.