Today, Yahoo gave Icahn 3 seats on the board of directors, bringing the total to eleven. Icahn takes a seat as the second largest institutional shareholder. While Icahn has failed to get a majority of seats, the situation continues to be a disruption to their business. Icahn’s unable to negotiate on behalf of the company without Yahoo’s permission, and must be allowed to participate on any committee that deals with a possible deal topic. While Icahn has a history of success in these ventures, we still have yet to see if there will be any deal between Microsoft and Yahoo.
Carl Icahn, an ambitious investor and significant stockholder of Yahoo shares, expects to win a vote by the board to remove current CEO, Jerry Yang from his title. Icahn is disappointed with Yahoo’s rejection of Microsoft’s takeover bid, and with just cause. The company’s shares continue to deteriorate, falling 32 from last year. Yahoo claims their stock was worth more than what Microsoft offered and allows them to refocus their efforts to core business. With another drop in value today, the bid, no longer on the table, becomes a more attractive offer to shareholders, and momentum is building.
Today’s the final day for Yahoo to respond to Microsoft’s takeover offer from February 1st 2008. The truth is, they have already responded. Yahoo’s told them that at $31 a share, they’re undervaluing the company. Yahoo feels the massive organization is worth $40 a share. Microsoft has threatened that to not accept this offer may instead cause them to receive worse offers in the future. It’s possible that Yahoo’s stockholders may vote pro-Microsoft members onto the board at the next opportunity. I still say we haven’t seen the last of it yet. It seems as though it will be tough for Yahoo to avoid it in the long term.