With the chances of success for Carl Icahn’s proxy fight slate seeming more remote after Legg Mason’s Bill Miller said that he was supporting the Yahoo status quo, a compromise deal was reached. Carl Icahn is getting a seat on Yahoo’s board of directors, and the company will choose two more directors from Icahn’s slate. So Jerry Yang and company sound like the big winners here, avoiding the proxy fight. Icahn’s representation on the board isn’t in the majority with only three of eleven seats, as an insider, he’s effectively muzzled from the press for now so he can’t make lots of noise to the outside world, and we suspect that Microsoft isn’t likely to want to negotiate with the company as a result, so the prospect of a full Microsoftl purchase is probably dead. Bottom line for shareholders: They get the short end of the stick. Blech.
Icahn said:
"I am very pleased that this
settlement will allow me to work in partnership with Yahoo!’s Board and
management team to help the Company achieve its full potential. While I continue
to believe that the sale of the whole Company or the sale of its Search business
in the right transaction must be given full consideration, I share the view that
Yahoo!’s valuable collection of assets positions it well to continue expanding
its online leadership and enhancing returns to stockholders. I believe this is a
good outcome and that we will have a strong working relationship going forward.
Additionally, I am happy that the board has agreed in the settlement agreement
that any meaningful transaction, including the strategy in dealing with that
transaction, will be fully discussed with the entire board before any final
decision is made."
Is Icahn really pleased? Somehow we doubt it.
Yahoo! Announces Settlement with Carl Icahn – MarketWatch
Tags: Carl Icahn, Microsoft
