Yahoo's Bostock and Yang launch attack on Icahn

by Tristan O'Carroll, Media Week 17-Jul-08, 15:15

LONDON - Yahoo has written to shareholders ahead of its crucial AGM next month, backing its embattled board of directors and labelling Microsoft's recent takeover attempts "stupefying".

The letter from Yahoo chairman Roy Bostock and chief executive Jerry Yang attacks rebel investor Carl Icahn, which last week partnered with Microsoft in its latest bid to seize control of Yahoo - an offer to buy Yahoo's search business - criticising his lack of knowledge about the business. It claimed the latest acquisition offer from "the odd couple" serves "only their very narrow special interests."

Icahn wants to replace the current Yahoo board of directors with his own executives open to a deal with Yahoo.

In today's letter, Yahoo said: "Icahn has made it clear that his only objective is to sell part or all of Yahoo to Microsoft. That fact, combined with his lack of an operating plan going forward, means that he will have no leverage to negotiate a fair deal with Microsoft."

It went on to criticise Icahn's motives, claiming his actions are not in the interests of the company. "His short-term approach gives Mr. Icahn a strong incentive to strike any deal with Microsoft that enables him to recover his investment and get back his money quickly, even a deal that does not provide full and fair value to you. Is that in the interests of all stockholders? Clearly, it is not."

Yahoo's AGM will take place on 1 August, at which point shareholders will be asked to back the current management team, or, elect Icahn's proposed slate of executives.

Comments

paul mogg - 18/07/2008

backing the current managment team is obviously the way to go and continue the same magic that has been happining im the q2 show that I'm the face of adversity the. Team has been experimcing they can still great the $ !