My Board is Better than Your Board
Carl Icahn is launching a proxy fight to unseat Yahoo’s current board to replace it with his own named members.
Since Microsoft withdrew its offer to purchase Yahoo, Icahn has purchased 50 million shares of Yahoo. It seems that Icahn purchased shares at a price he believes is below that which he can entice Microsoft in a friendly purchase. According to a WSJ report, Mr. Icahn contacted Microsoft to determine the company’s interest in restarting talks, but did not receive a response.
The latter point is interesting in that it is very possible that Microsoft has finally discovered just exactly the kind of boneheaded move the proposed purchase really was. There is nothing in Yahoo that is complementary to Microsoft operations. The two companies actually overlap greatly. Microsoft would do well to avoid a restart of talks.
Mr. Icahn is engaged in a buy low – sell high short term strategy. Even if he wins the Board seats, he may find that he has bought low and will sell lower.
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