 |
User: Login |
Weblog covering digital business
Digital Business, Live From New York. |
| Address URL | http://www.alleyinsider.com/ Registered: 22-Mar-2008 |
| Ads: | |
 Send to email | Blow to Icahn: Proxy Loss Triggers Yahoo (YHOO) Severance Bonanza. When Will Carl Give Up and Sell? in YHOO |  By Silicon
el 11-Jun-2008 |
carlicahn.jpg: Paste this image in your site, Myspace, Facebook, Ebay copy this code...
 Add this to the list of reasons we won't be voting for Carl Icahn's Yahoo (YHOO) slate: If he wins the proxy contest, this will trigger the massive severance-bonus plan Yahoo put in place to fight off Microsoft. This will ensure that whatever management moves Carl's new board makes will cost shareholders a ton of money and put Yahoo even more behind the eight ball.
(Yahoo's executives can't just quit and take the package. But our understanding is executives can resign for "good reason," which leaves a lot of wiggle room. And, if nothing else, the package will make it more expensive for Carl's new CEO to fire a lot of Yahoos, which we suspect would be one of his or her first moves.)
As some readers have pointed out, it's not our vote that matters is Icahn v Yahoo, but the votes of huge shareholders such as Gordie Crawford (Capital Research and Management) and Bill Miller (Legg Mason). After blasting Jerry Yang and Yahoo's board for blowing the Microsoft deal, Gordie has been mum. Bill, meanwhile, has been trimming his position. If we had to guess, we imagine that Gordie and Bill are likely thinking along the same lines we are. Namely:
- Carl Icahn has no real plan for Yahoo other than selling to Microsoft
- This weak negotiating position would likely lead to a takeout in the high-$20s, if that.
Carl says he wants to recruit a new CEO. We think Jerry's actually doing an okay job playing the crappy hand he was dealt, so we're going to need more detail than "fire Jerry" before we get excited about that. Carl also says if Microsoft won't buy the company, he'll run to Google and do a search deal. This is exactly what Yahoo is trying to do now, so, again, we don't see the need to hire Carl's team (at great cost) to do it.
Bottom line? We think Carl Icahn is going to lose this proxy fight. We think he'll probably soon conclude the same thing (if he hasn't already), which means he'll likely want to start unwinding some of his position (which is--or was--mostly options). If Carl bails, so will his hedge fund friends--Boone Pickens, Dan Loeb, John Paulson, et al. This will put even more pressure on the stock.
See Also:
More Icahn Insults For Yahoo Reveal That Carl Has Little More To Say
Icahn to Yahoo Chair: You're The Liar, and Here's My Plan
Sorry, Carl, We're Not Voting For Your Yahoo Proxy Plan
Read 0 times
|
|
 |
| Carl Icahn begins proxy bid for Yahoo |  Yahoo, fresh off the Microsoft rollercoaster, is about to find itself in the midst of yet another takeover bid. Carl Icahn, the world’s 46th richest man, is about to begin a proxy bid for the internet giant. The mogul has nominated a board of 10 people to replace the current Yahoo board of advisers. In [...] [..] Read complete article | | Published 15-May-2008 by Joshua Karp in News
Read 7 times. More hits in   |
|
| Yahoo: We Will Slay Hedge Fund Wolf Pack in Proxy Fight |  A secret Yahoo (YHOO) source tells the WSJ that Yahoo thinks its shareholders will reject the Icahn proxy fight. Unless Icahn delivers a Microsoft (MSFT) transaction before the July 3 shareholder meeting, we agree.
Moreover, as we've said, we think voting against the Icahn slate in the absence of a deal is the right move: Steve Ballmer is not a moron, and if Icahn decapitates Yahoo's boa [..] Read complete article | | Published 21-May-2008 by Silicon in MSFTYHOO
Read 3 times. More hits in |
|
|
Warning We are not responsible of information posted from external feeds. Use this website at your own risk.
Notice: We will not be liable for any direct or indirect loss or damage arising under this disclaimer or in connection with our website, whether arising in tort, contract, or otherwise.
|
|
| |
Hello, Guest
Online: 65 visitors
+ fotos
Here's the official end of the Yahoo-Icahn proxy war: Yahoo will give the corporate raider 3 seats on its board (one for himself, plus two more), and Carl agrees stop fighting. The basics: [..] 
Now that his proxy fight against Yahoo management is over, Carl Icahn says he's going to become a much more prolific blogger. Next post: lobbing a brick back at the Wall Street Journal over [..] 
The drubbing Carl Icahn took last week may just have beaten the stuffing out of him. The raider "hinted" that he might not press forward with his campaign to get Yahoo's board fired, Reuters [..] 
He's about to become a Yahoo (YHOO) board member. He owns 5% of the company. Yet Carl Icahn, who led a proxy fight to replace Yahoo board and management, won't be attending [..] 
Carl Icahn sent his howler to the Yahoo board (full text below). Lots of fun we're-mad-as-hell rhetoric--the board's actions have been "insulting" and "deceitful"--and one actual construct [..] 
