Icahn to Launches Proxy Fight Against Yahoo

May 15th, 2008 at 12:00 am

carl icahn

Carl Icahn, an internet billionaire who has shares in virtually everything online, has called for a proxy fight against Yahoo to replace the current board of directors and ultimately let make way for teh Yahoo-Microsoft merger.

In a letter to Yahoo chairman Roy Bostock, Icahn as well as big investors in  Yahoo, is leading the fight to replace the current Yahoo board with a slate of 12 of twelve executives they think would do the job of making the Microhoo merger a reality.  Icahn disclosed that he has bought 59 million shares of Yahoo and is totally disappointed by the way the Yahoo board handled the takeover of Microsoft.

Of course the motivation for the proxy fight and the merger is that Icahn will definitely make a couple of hundred million  if Mcrosoft buys Yahoo for $33 a share.

Mark Cuban is one of Icahn’s nominees for the chair of the board.  Ironically, cuban madehis fortune when he sold Broadcast.com  to Yahoo for $5.6 billion back in the first dot-com bubble.

Icahn’s letter in a nutshell says these stern words:

“It is irresponsible to hide behind management’s more than overly optimistic financial forecasts.”

“During the past week, a number of shareholders have asked me to lead a proxy fight to attempt to remove the current board and to establish a new board which would attempt to negotiate a successful merger with Microsoft, something that in my opinion the current board has completely botched.”

“It is unconscionable that you have not allowed your shareholders to choose to accept an offer that represented a 72% premium over Yahoo’s closing price of $19.18 on the day before the initial Microsoft offer.”

What happens after the proxy fight will of course be anotehr interesting topic that the blogosphere and media will have their hands all over.  So we’ll be there too.