Icahn Proxy Fight has Yang in the Crosshairs

June 3rd, 2008 at 12:00 am

carl icahn

Carl Icahn, probably had the most to lose when Yahoo did not merge with Microsoft, is leading a proxy fight against Yahoo ‘s board of directors.

Having recently getting permission from the  Federal Trade Commission (FTC) to purchase massive quantities of Yahoo stock, billionaire investor Carl Icahn is now in the position to overhaul Yahoo’s board of directors.  In his crosshairs and top of his list, Jerry Yang, founder and CEO of Yahoo Inc.

Icahn’s plan, replace the Yahoo board and renegotiate a merger with Microsoft.  In the process, he makes a coupleof billion dollars.

Anyway, recent developments report that Icahn is targetting Yang’s ouster, siting documents that proved that Yang was "sabotaging" the Microsoft-Yahoo merger.  The documents included Yang dismissing third party intelligence advice and pushed for a better employee severance plan to drive  up Yahoo’s asking price.

Mr. Icahn spoke with the Wall Street Journal stating, “It’s no longer a mystery to me why Microsoft’s offer isn’t around.  How can Yahoo keep saying they’re willing to negotiate and sell the company on the one hand, while at the same time they’re completely sabotaging the process without telling anyone?”

Yang has not yet issued a response.