Icahn Sets Sights on Yahoo Board Takeover
Date : 15 May 2008 Category : Technology
NewsFactor Network"It is clear to me that the board of directors of Yahoo has acted irrationally and lost the faith of shareholders and Microsoft. It is quite obvious that Microsoft's bid of $33 per share is a superior alternative to Yahoo's prospects on a stand-alone basis," Icahn wrote. "I am perplexed by the board's actions. It is irresponsible to hide behind management's more-than-overly-optimistic financial forecasts."
Icahn Suggests New Yahoo Board
Icahn went on to call "unconscionable" Yahoo's decision not to allow its shareholders to choose an offer that represented a 72 percent premium over Yahoo's closing price of $19.18 the day before Microsoft's unsolicited acquisition bid. Icahn and many of Yahoo's shareholders strongly believe a merger of Yahoo and Microsoft would form a dynamic company that could compete with Google.
In the last 10 days, Icahn revealed, he has purchased approximately 59 million Yahoo shares and share-equivalents. He has also formed a 10-person slate that will stand for election against the current board. And he has sought antitrust clearance from the Federal Trade Commission to acquire up to approximately $2.5 billion worth of Yahoo stock.
The suggested board members include Dallas Mavericks owner Mark Cuban, who sold Broadcast.com to Yahoo for $8.1 billion in cash and stock in 1999. Adam Dell, Dell founder Michael Dell's brother, and Frank Biondi Jr., the former CEO of Viacom, are also on the list.
"While it is my understanding that you do not...