updated 12:35 am EDT, Thu June 5, 2008
Yahoo rebuffs Icahn
As aggravations rise over the controversial $2.1 billion severance plan, Yahoo insists that talks are ongoing with Microsoft, rebutting against criticism from investor Carl Icahn, who recently wrote Yahoo's chairman a disparaging letter. Yahoo highlighted its recent ad partnerships with Wal-Mart and several others, but president Susan Decker said that an arrangement with Microsoft could still occur. Icahn recently blasted the search giant, calling Yahoo's board "deceitful".
Yahoo also answered Icahn, stating that the billionaire has grossly misrepresented what happened, manipulating the facts to increase investor pressure on the company. Chairman Roy Bostock says in a reply to Icahn that he accuses Yahoo of turning down or sabotaging seemingly generous offers, but notes that he fails to provide any alternatives for the company to improve profitability.
Icahn is reportedly trying to assemble a proxy board for Yahoo, one with greater sympathies towards Microsoft, in order to enact plans for an ancillary deal with the Windows manufacturer.