Stephen Withers
Friday, 16 May 2008 04:11
Business IT -
Networking
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Microsoft walked away from its offer to acquire Yahoo!, but some investors think they know how to get the parties talking again - and that's bad news for the Yahoo! board.
Billionaire Carl Icahn has purchased approximately 9.9 million Yahoo! shares plus 49 million options, and is leading a push to oust the entire board in favour of his own team.
In a letter to Yahoo! chairman Roy Bostock, Icahn used words including "irrationally," "irresponsible," "unconscionable" and "botched" to describe the board's handling of Microsoft's approach.
"It is clear to me that the board of directors of Yahoo has acted irrationally and lost the faith of shareholders and Microsoft," he wrote. "It is quite obvious that Microsoft's bid of $33 per share is a superior alternative to Yahoo’s prospects on a standalone basis."
The proxy board that will be put to shareholders comprises Icahn and his offsider Keith Meister, along with Harvard law professor Lucian Bebchuk, entertainment executive Frank Biondi, mobile communications exec John Chapple, entrepreneur Mark Cuban, venture capitalist Adam Dell (brother of Michael), former advertising executive Edward Meyer, fund manager Brian Posner, and New Line Cinema founder Robert Shaye.
Chapple and Meyer are believed to have been part of the slate that would have been proposed by Microsoft if it had made good on its threat of a proxy battle.
Who is supporting Icahn?
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