Feeds

Yahoo! shareholders call for Icahn preemption

Another kick to Yang's fiduciaries

Secure remote control for conventional and virtual desktops

Carl Icahn wants to replace Yahoo!'s board of directors so he can vaporize its employee retention plan and sell the company to Microsoft. But some litigious Yahoo! shareholders think he's got it slightly wrong.

In their ongoing lawsuit against Jerry Yang and company, two share-holding Detroit pension funds have argued that Yahoo!'s much-discussed severance package isn't just an impediment to a Microsoft merger. It's also an impediment, they say, to a Carl Icahn takeover.

Yahoo!'s severance package kicks in if two conditions are fulfilled. One: Control of Yahoo! changes hands. And two: an employee is fired or quits with "good reason."

In court papers filed late Monday with the Delware Court of the Chancery, the Police & Fire Retirement System of the City of Detroit and the General Retirement System of the City of Detroit insist that Condition Number One would be fulfilled if Icahn succeeds in replacing Yahoo!'s board of directors.

"If Icahn’s slate prevails, Yahoo shareholders will be funding huge cash severance and equity acceleration over the following two years for every employee who is either terminated or who resigns with 'good reason' as that phrase is loosely defined in the Severance Plans," the filing reads. "This discriminatory application of the Severance Plans coerces the stockholder vote."

In other words, it would prevent people from voting for Icahn's slate - and prevent a Microsoft merger. And all these pensions funds want is a Microsoft merger. Their suit clams that Yahoo!'s rejection of that $44.6bn Microsoft bid - and subsequent higher bids - was a "breach of fiduciary duties."

So, the Detroiters have called for a trial date before Yahoo!'s August 1 shareholders. And they've called on the court to vaporize the severance package. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
JINGS! Microsoft Bing called Scots indyref RIGHT!
Redmond sporran metrics get one in the ten ring
Driving with an Apple Watch could land you with a £100 FINE
Bad news for tech-addicted fanbois behind the wheel
Murdoch to Europe: Inflict MORE PAIN on Google, please
'Platform for piracy' must be punished, or it'll kill us in FIVE YEARS
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Sony says year's losses will be FOUR TIMES DEEPER than thought
Losses of more than $2 BILLION loom over troubled Japanese corp
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
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?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.