Billionaire investor and activist shareholder Carl Icahn is looking into staging a proxy battle for board member  seats at Web pioneer Yahoo, in a move aimed to drive the Sunnyvale, California-based firm back into merger negotiations that would seek to complete a sale to Microsoft, said people who have discussed the matter with Icahn, speaking on condition of anonymity Tuesday, according to reports in several publications including the Wall Street Journal and The New York Times. The potential proxy battle involving Icahn indicates that a possible merger between Microsoft and Yahoo, although officially abandoned on May 5 when Microsoft withdrew its $47.5 billion offer after facing resistance from Yahoo, may not yet be finished. Revived Microsoft-Yahoo Merger May Hinge On Billionaire Investor Icahn Icahn is expected to decide Wednesday whether to pursue a proxy contest, one day before a Thursday deadline for the nomination of a slate of candidates for a shareholder vote at Yahoo's yearly meeting planned to take place on July 3. Since Microsoft withdrew its bid Icahn has purchased some 50 million shares of Yahoo stock valued at roughly $1.3 billion, representing about 3.5 percent of the firm, in an move anticipated to gain Yahoo board seats, he told associates in the confidential talks. Microsoft has been contacted by friends of Icahn in an effort to bring the world's largest software maker back to the deal-making table with Yahoo, the anonymous sources said Tuesday. Microsoft did not offer to resume talks with Yahoo, the unnamed people said, instead referring Icahn to its official statement from earlier this month in which the Redmond, Washington-based company said that it has "moved on." Microsoft Not Yet Ready To Return To Yahoo Negotiations Without assurances from Microsoft that it will enter into negotiations with Yahoo once again, Icahn's decision on waging a proxy battle at Yahoo remains up in the air, according to the people familiar with the matter, who were not authorized to speak publicly. Some Yahoo shareholders, who  have expressed their displeasure with the company for not accepting a Microsoft offer that was valued at more than a 60 percent premium when initially made, may be likely to react positively to a push for a new group of 10 board members. Since May 5 Yahoo board members have received ample correspondence from company shareholders upset with Yahoo's handling of Microsoft's hostile takeover bid. Icahn was also considering whether, should he move forward and push for a proxy battle, he would nominate a full or partial slate of candidates, according to the people familiar with the matter. Some Wall Street analysts consider it unlikely that Icahn would press for a proxy battle without assurances from Microsoft that it would return to the negotiating table with Yahoo. During final negotiations Microsoft had increased its initial $44.6 billion offer of February 1 to $47.5 billion, or $33 per share of Yahoo stock, however Yahoo chief executive and co-founder Jerry Yang and his management team held strong to a demand to accept no less than $53 billion, or $37 a share, an amount greater than Microsoft chief executive Steve Ballmer and his team were willing to pay, Ballmer said at the time. Yahoo And Microsoft Share Prices Could Signal New Round Of Talks With shares of Yahoo stock keeping near the $25 mark, an amount considerably higher than their $19 value before the first bid from Microsoft, and Microsoft stock remaining steady, some analysts are optimistic a deal may yet take place between the two technology firms. After news of Icahn's possible interest in mounting a proxy battle was first reported Tuesday by CNBC, Yahoo share prices rose 5 percent, to $26.56. Neither Microsoft or Yahoo have commented publicly about Icahn's possible plans. Icahn could find additional support for his proxy push, perhaps from investment firm Firebrand Partners LLC controlled by Scott Galloway, which was considering becoming involved according to a Journal report. Icahn has a three decade history of pushing for deals at a number of large companies including Time Warner, T.W.A., Blockbuster, Oracle Corp. and BEA Systems Inc. Related Links:
|
11:37 pm on May 14, 2008 (utc 0)