Icahn claims sabotage, ill-intent behind Yahoo plan
updated 09:30 pm EDT, Wed June 4, 2008
Icahn claims sabotage
Investor Carl Icahn on Wednesday issued a letter addressed to Yahoo chairman Roy Bostock, claiming that the actions of CEO Jerry Yang and other members of the board went out of their way to sabotage a potential deal with Microsoft. Silicon Alley Insider reports that the letter sets up a villainous scenario related to the show-stopping severance plan a state judge revealed on Monday. The plan would have a potential cost of $2.1 billion to Microsoft, had the unlikely scenario occurred where all employees quit upon a takeover.
Icahn paints a grim portrait of the entire situation, saying that the only way to "salvage" Yahoo, would be to merge with Microsoft. He writes that the board is taking contradictory actions, having so far rebuffed a $40, $33, and $31 per share offer, but saying it would consider deals that would be in the "best interests of the shareholders."
Icahn considers that Yahoo's only course of action should be to dissolve the deal-breaking severance plan, and approach Microsoft in acceptance of its original offer. He claims that the plan, which was implemented in the apparent interests of Yahoo employees, was never actually revealed to them, and as such, is a meaningless stall tactic for the search giant.
Mac Elite
Joined: Jul 2002
Well
Sorry your plan isn't working out, bud. The execs would be fired anyway, more than likely, so might as well write themselves in a sweet severance deal. It's as fair as a hostile takeover, for sure.