Yahoo responds to Carl Icahns call on MS deal

Yahoo responds to Carl Icahn's call on MS deal

Says Yahoo!’s board has the knowledge and independence to navigate the company through the rapidly changing Internet environment

Friday, May 16, 2008

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BANGALORE, INDIA: Yahoo! has responded to New York-based billionaire financier Carl Icahn's announcement that he intended to replace Yahoo Inc's board with directors who would reopen talks with Microsoft Corp.

Icahn had said that he proposes to nominate a slate of ten directors to Yahoo!'s board of directors at the 2008 annual meeting of stockholders.

In a letter to Icahn, Yahoo board chairman Roy Bostock has said that a "fair-minded" review of the factual record leads to one conclusion that Yahoo!'s ten-member board, comprised of nine independent directors along with Yahoo! CEO Jerry Yang, remains the "best and most qualified group" to maximize value for all Yahoo stockholders.

The letter says that Icahn's letter reflected a "significant misunderstanding" of the facts about the Microsoft proposal and the 'diligence' with which Yahoo's board evaluated and responded to that proposal.

According to Yahoo, with Microsoft's offer at $33 and Yahoo!'s counter-proposal at $37, Microsoft elected to walk away from the negotiating table and that it has never engaged further on price or any of the key non-price deal terms.

The letter says that what Yahoo!'s independent board refused to do was to allow control of the company to be acquired for less than its full value.

The letter concludes by saying that Yahoo continues to believe that its current board has the 'independence' and the 'knowledge' to navigate the company through the rapidly changing Internet environment and to deliver value for Yahoo! and its stockholders.

Icahn had launched a campaign to replace Yahoo Inc's board with directors who would reopen talks with Microsoft, saying Yahoo acted "irrationally" in refusing the software company's $47.5 billion bid.

He had heavily criticized Yahoo for the breakdown in talks with Microsoft.

©CyberMedia News

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