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Icahn to start proxy war for MS/Yahoo deal?

updated 05:15 pm EDT, Tue May 13, 2008

Icahn and Yahoo Deal

Activist investor Carl Icahn may use his clout to instigate a proxy battle that pushes Yahoo towards accepting a Microsoft takeover, CNBC says. Those talking to Icahn allegedly say he will push for the nomination of three or four candidates to Yahoo's board of directors that would favor a Microsoft buyout, giving just enough influence on the ten-person board to have it vote in favor of the acquisition that it has resisted in the past. Dissatisfaction with Yahoo's rejection of Microsoft offers could make this simple, the sources explain.

The maneuver is considered "risky" but is likely moving quickly, according to those reports. Icahn has reportedly been stockpiling shares to make his vote more influential in nominating board members, and may now have as many as 50 million shares to his name. That Yahoo's shares are still trading well above their pre-bid value despite Microsoft's withdrawal of its offer is said to hint at buying activity by Icahn.

If accurate, the investor would have no choice but to nominate his board before Thursday as Yahoo's annual shareholders' meeting approaches.

Icahn is considered one of the most powerful single financiers in the US and is known for using his influence on company stocks to make wide-ranging changes at companies he considers important. The investor recently obtained influence at Motorola after a prolonged campaign and is lending support to a proposed Blockbuster takeover of Circuit City. Both moves are considered attempts to improve results at significant but ailing US companies.



By Electronista Staff
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Comments

  1. MeandmyMac

    Fresh-Faced Recruit

    Joined: Feb 2008

    +1

    Not again?!

    Is this the same Icahn that destroyed TWA? Good luck Yahoo!!!

  1. MeandmyMac

    Fresh-Faced Recruit

    Joined: Feb 2008

    +1

    He will destroy them all!

    "Icahn is considered one of the most powerful single financiers in the US and is known for using his influence on company stocks to make wide-ranging changes at companies he considers important."

    Yeah, he runs them into the ground!

    The investor recently obtained influence at Motorola after a prolonged campaign..."

    And how well is Motorola doing these days? Made my point!

    "...and is lending support to a proposed Blockbuster takeover of Circuit City. Both moves are considered attempts to improve results at significant but ailing US companies."

    Has Icahn ever "improved the results at significat but ailing US companies"? I wonder...

  1. WiseWeasel

    Junior Member

    Joined: Apr 1999

    +1

    Get some popcorn ready

    This is going to be entertaining after all. Perhaps Icahn missed the part where Yahoo's top executives were warning that the corporate cultures at Yahoo and MS are completely incompatible, and that Yahoo would be hemorrhaging all their top talent if such a deal went down. MS might benefit from access to the Yahoo brand, but that's about all they're going to get from it once people start ditching all the Yahoo services as they're switched to being controlled by Microsoft. Personally, I don't use any Yahoo services, so I'm just in it for the show as MS sinks that web property. At least Jabber will finally be getting a boost once YIM goes down the tubes...

  1. Sabon

    Fresh-Faced Recruit

    Joined: Mar 2005

    +1

    Please let this die

    The ONLY good thing about the idea of MS and Yahoo merging was to get people to stop thinking about what a clunker Vista is.

    The only bigger joke is that MS gets to count installs of XP as installs of Vista. How about D.C. getting involved in MS' lack of truth in advertising.

  1. Feynman

    Forum Regular

    Joined: Aug 2006

    +1

    There is no doubt

    that Microsoft is paying Icahn for his "services". Microsoft are going to die sooner than later if they keep these crumby tactics up!

  1. climacs

    Dedicated MacNNer

    Joined: Sep 2001

    +1

    yes it's him

    it's criminal (or should be) what Icahn did to TWA, a once-proud airline I flew often in my youth.

    He looted that airline. In order to get rid of this SOB, TWA had to agree to grant Icahn a block of tickets at a deep discount of 45% off published fares for a period of 8 years. Icahn turned around and sold them cheaply, undercutting TWA's fares. TWA died in 2001 when it was bought by American Airlines.

    This guy is the scum of capitalism. About the only thing worse than Microsoft taking over Yahoo, would be for Icahn to be involved in the deal.

  1. UmarOMC

    Fresh-Faced Recruit

    Joined: Aug 2001

    0

    eh?

    Testing; 1, 2, 3.

  1. testudo

    Forum Regular

    Joined: Aug 2001

    -1

    Re: there is no doubt

    Sorry, but he isn't being 'paid' by MS for his services. He's in business for himself, always has been. I didn't realize he owns stock in Yahoo, but he will push for this because he sees a big payday. That's all he wants. He could give a c*** about MS, Yahoo, Google, or anybody else. If Apple offered more, he'd press for that.

  1. koolkid1976

    Fresh-Faced Recruit

    Joined: May 2003

    +1

    re: re: there is no doubt

    Yes, he's all for himself, but Microsoft has to be involved. How can he push for a Microsoft buyout of Yahoo if Microsoft publicly claim they are no longer interested in Yahoo? Only way he could is if they told him behind the scenes that they'd still favor buying Yahoo if the board could be turned in their favor. Microsoft is known for fighting long battles, even if they have to lose a lot of money doing so. Not for giving up.

  1. nat

    Junior Member

    Joined: Mar 2002

    +1

    doubt?

    "Sorry, but he isn't being 'paid' by MS for his services."

    and your proof? you call out feynman but offer no proof of your own. i should believe you over him/her because you say so?

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