Feeds

Icahn laughs at Yahoo!

Details Googlicious takeover plan

Next gen security for virtualised datacentres

Carl Icahn has tossed yet another letter at Yahoo!, reiterating his claims that it botched a possible merger with Microsoft and detailing his plans for the company should he succeed in overhauling its board of directors.

After booting Jerry Yang, Icahn says, he'll renew merger talks with Microsoft. And if that doesn't work, he'll strike a search deal with Google.

Earlier this week, Yahoo! chairman Roy Bostock accused Icahn of seriously misrepresenting the company's response to Microsoft's mega-merger bid. And today, Icahn responded by saying "I'm not misrepresenting! You are!" Or words to that effect.

The notorious takeover artist continues to refer to Yahoo!'s post-bid employee retention plan as a suicide device. "I stand by my characterization of your 'poison pill' severance plan and I find it humorous to see you attempt to defend it," he wrote in this morning's letter to Chairman Bostock.

"Roy, it is you who 'misrepresents and misstates the details' of the plan. Much like the rhetoric in many well known political campaigns, you keep repeating misstatements in the hopes that by repeating misstatements enough times it will convince your shareholders that these misstatements are valid."

Bostock had also asked Icahn "what exactly would happen to our Company if you and your nominees were to take control of Yahoo!?" So Icahn responded with a five-point plan:

  • First, I would work to have the board replace your "poison pill" severance plan with an acceptable alternative.
  • Second, I intend to ask our new board to hire a talented and experienced CEO (attempting to replicate Google's success with Eric Schmidt) to replace Jerry Yang and return Jerry to his role as "Chief Yahoo". Indeed, it was much speculated that Jerry would serve in the CEO role temporarily until a permanent CEO was hired after the board asked Terry Semel to resign.
  • Third, I intend to ask our new board to inform Microsoft that unless any alternative transaction can insure a $33 or higher stock price (of which I am skeptical) all talks of alternative transactions are over.
  • Fourth, I will ask our new board to offer publicly to sell Yahoo! to Microsoft in a friendly and cooperative transaction.
  • Fifth, to the extent Microsoft does not want to make a proposal, I will ask our new board do a deal on search with Google, but only if it contains termination provisions that would in no way impede a subsequent acquisition by Microsoft.

Icahn is set to launch his proxy battle at Yahoo!'s annual shareholders meeting on August 1. But he's also urging Bostock to kill the retention plan on his own - and make the sale on its own. "In my opinion, Microsoft does not believe you will ever sell the entire company on a friendly basis," the letter continued. "So why don't you stop dancing around the subject and publicly offer to sell the company to Microsoft for $34.375 per share and promise to cooperate completely?"

This time, Roy didn't answer. But Yahoo! did issue a canned-statement repeating what it repeated before. "Leaving aside Mr. Icahn's inaccurate interpretation of our retention plan, we again note that he has no credible plan to operate Yahoo!," the statement reads. "We believe that Mr. Icahn's suggestion that we cancel our retention plan would have a destabilizing impact on Yahoo! and would clearly not be in the best interests of our shareholders.

"Furthermore, his suggestion that we put out a price publicly to see if Microsoft will alter its stated position is ill-advised. As we have stated numerous times publicly and privately, we are open to any transaction including a sale to Microsoft if it is in the best interests of shareholders."

And so we wait for another letter from Mr. Icahn, who now owns 59 million Yahoo! shares - about a four per cent stake. Perhaps he'll repeat that Yahoo! is repeating itself. Yes, it's Groundhog Day. At least until August 1. ®

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Broadband slow and expensive? Blame Telstra says CloudFlare
Won't peer, will gouge for Internet transit
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?