Feeds

Icahn Yahoo! writes! a! letter!

Urges shareholders to see sense

  • alert
  • submit to reddit

Top 5 reasons to deploy VMware with Tegile

Yahoo! has written another letter to shareholders making clear exactly how and when it would sell to Microsoft and why shareholders should definitely not vote for Carl Icahn and his proposed slate of board directors. It also suggests Yahoo! could sell its Asian business and return money to shareholders.

The letter does not resort to the capital letters favoured by rival letter-writer Icahn but is equally damning.

Icahn, we are told, has created an impossible situation for himself - he has no leverage with which to negotiate a decent deal with Microsoft because he has no other plan for the company. Secondly Icahn and his would-be board do not have the experience either to restructure a high-technology company in a fast-changing environment. Nor do they have the experience to manage Yahoo! during the estimated year it would take to get regulatory approval of any possible takeover.

The letter asks what is behind the "odd-couple" collaboration between Microsoft and Icahn. It continues:

But Microsoft’s flip flops and inconsistencies over the past five months are so stupefying that one can only conclude that Microsoft was never fully committed to acquiring Yahoo! either because:
  • Microsoft can’t decide what is and isn’t strategically important to its online business; or
  • Microsoft is more interested in destabilizing a key competitor so that it can either enhance its competitive position or buy our highly valuable search business — and the enormously desirable intellectual property associated with it — at a bargain basement price.

The letter outlines three options acceptable to the existing Yahoo! management. The first is to sell the whole company to Microsoft for $33 a share or more provided Microsoft makes an offer which is certain to close and certain to provide that value. An alternative is to sell its search business to Microsoft provided it could do so in a way that safeguards the rest of Yahoo!'s business. Finally the board would consider a potential sell-off of its Asian business and return of cash to shareholders.

Yahoo! is a strong performer across Asia especially in Japan and South Korea.

The letter urges readers to "Please compare and contrast the straightforward, responsible actions and positions of your Board of Directors with the behavior of Mr. Icahn and Microsoft... We believe the Icahn slate and agenda present significant risk to your investment in Yahoo!. We believe you cannot count on Microsoft to bail out Mr. Icahn’s misguided agenda..."

The letter urges shareholders to vote using the white proxy card in favour of the current board of directors.

For all our Microhoo! coverage head here. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.