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Investor launches Yahoo challenge | Investor launches Yahoo challenge |
(20 minutes later) | |
The billionaire investor Carl Icahn has launched a battle to topple the Yahoo board and replace its 10 members with his own slate of directors. | The billionaire investor Carl Icahn has launched a battle to topple the Yahoo board and replace its 10 members with his own slate of directors. |
Mr Icahn said in a letter to Yahoo that it was clear the board had acted "irrationally" in its dealings with Microsoft, which tried to buy it. | |
Shareholders will now get the choice between the two boards at the annual meeting on 3 July. | Shareholders will now get the choice between the two boards at the annual meeting on 3 July. |
Mr Icahn wants to buy an additional $2.5bn worth of Yahoo shares. | |
'Unconscionable' | |
The manoeuvre follows much anger and criticism over Yahoo's decision, led by co-founder and chief executive Jerry Yang, to turn down Microsoft's $47.5bn (£24.4bn) offer to buy the company. | |
Yahoo had wanted Microsoft to increase its bid of $33 a share to $37 a share. | |
Mr Icahn said it was "unconscionable" that the firm had not put the decision to shareholders, saying the offer was a 72% premium to the value of Yahoo shares before the bid was tabled. | |
"I and many of your shareholders strongly believe that a combination between Yahoo and Microsoft would form a dynamic company and more importantly would be a force strong enough to compete with Google on the Internet," Mr Icahn said. | |
Microsoft has now said that, contrary to rumours of it possibly making another move later in the year, talks with Yahoo are over. | |
Mr Icahn has reportedly spent more than $1bn to buy about 50 million Yahoo shares - a 3.6% stake - allowing him to increase the pressure on Yahoo's board. | Mr Icahn has reportedly spent more than $1bn to buy about 50 million Yahoo shares - a 3.6% stake - allowing him to increase the pressure on Yahoo's board. |