Icahn’s battle begins

tim — Fri, 16 May 2008 10:53:18 +0000

As anticipated, Carl Icahn has begun his proxy battle with Yahoo!

In an open letter to Yahoo chairman, Roy Bostock, Icahn said the board had “acted irrationally and lost the faith of shareholders and Microsoft. It is obvious that Microsoft’s bid of $33 per share is a superior alternative than Yahoo’s prospects on a stand alone basis.”

He went on to urge Yahoo! to “move expeditiously to negotiate a merger with Microsoft, thereby making a proxy fight unnecessary.”

Alongside his support from Bill Miller, Icahn’s move has further support from at least one other major shareholder, Paulson & Co. with a 3.4 percent stake in Yahoo!

But Microsoft are showing no signs of returning to the table. Yesterday, Microsoft spokesman, Frank Shaw said simply “The company has moved on”.

Its final offer of $33 wasn’t enough to satisfy Yahoo!’s co-founder and Chief Executive Jery Yang, who wanted $37 per share, even though shares had been trading at around $19 prior to that.

For the current share price, and its movement over the last 5 days, see below.

HAVE YOUR SAY: What do you think the future holds for Yahoo!? Drop me a comment…

Miller Backs Icahn’s Yahoo! Proxy Battle

tim — Thu, 15 May 2008 12:09:56 +0000

Further to my post yesterday about the Yahoo! saga, I see that Bill Miller, who as portfolio manager at Legg Mason controls more than 6% of Yahoo!’s shares, welcomed Carl Icahn among the senior shareholders yesterday.

“To the extent he can get the parties back to the table I’d be all in favour of that”, he said.

Miller’s endorsement indicates a significant portion of Yahoo! is leaning towards the Microsoft deal.

It is one thing for a board to have pressure from its shareholders, yet another to have that pressure intensified by a rush of new shareholders.

Yahoo!’s shareprice will start at $27.14 this morning. Interesting to see how it moves through the day…

This is how it stands currently, and a chart of the past 5 days (delayed 15 mins)…:

Yahoo! Finance
Quote for YHOO/

Although we’re told that Microsoft have given no indication that they will resume talks with Yahoo!, Icahn now has the power to replace the Yahoo! board with one which will be more open to the takeover bid.

Bill Miller’s endorsement means that few would stand in his way if he chose to do that, but he hasn’t got long.

The news over the next few days will be vital to the future of the whole Internet industry. Watch this space…

Tim Brocklehurst » shareprice

Icahn’s battle begins

Miller Backs Icahn’s Yahoo! Proxy Battle