Yahoo brushes off Microsoft and Icahn bid
Monday 14 July 2008
The internet giant Yahoo rejected a restructuring proposal put forward by Microsoft and the activist shareholder Carl Icahn at the weekend, claiming it had "anything but the interests of Yahoo's stockholders in mind".
Mr Icahn and Microsoft approached Yahoo on Friday, giving it just 24 hours to respond to a plan which would have seen Microsoft pick up Yahoo's core search engine business, while leaving the remainder to be bought by Mr Icahn.
In a statement released at the weekend, Yahoo said its existing business, complemented by a recently signed commercial agreement with Google, was worth more to shareholders than the Microsoft/Icahn proposal. It added that a sale of its search engine business would also preclude a potential sale of the Yahoo group at a full and fair price – a transaction which it believes could be negotiated and completed before the beginning of next month.
"Clearly, Microsoft, having failed to advance in search, is aligning with the short-term objectives of Mr Icahn to coerce Yahoo into selling its core strategic search assets on terms that are highly advantageous to Microsoft, but disadvantageous to Yahoo stockholders," said Roy Bostock, Yahoo's chairman. "Yahoo's board of directors will not allow that to happen.
"After negotiating among themselves without the involvement of Yahoo, Carl Icahn and Microsoft presented us with a 'take it or leave it' proposal ... giving us less than 24 hours to respond. It is ludicrous to think our board could accept such a proposal. While this type of erratic and unpredictable behaviour is consistent with what we have come to expect from Microsoft, we will not be bludgeoned into a transaction that is not in the best interests of our stockholders."
Mr Icahn has been a vocal critic of the Yahoo management in recent weeks after the company knocked back a bid of $33 a share from Microsoft to buy the business outright. In its statement, Yahoo said it was willing to talk to Microsoft about a sale of the whole business for "at least $33 a share". But Microsoft has said it is no longer interested in a bid for Yahoo, as long as the current board is in place.
- 1 Cyclist in Russia narrowly misses being hit by car and lorry
- 2 'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
- 3 What are your fingerprint words?
- 5 Pink Floyd new album: Band unveil cover art for first record in 20 years
Rihanna 'nude pictures' claims emerge on 4Chan as hacking scandal continues
Slough train station deaths: Woman and child killed after being 'pushed in front of train'
Kim Kardashian 'nude photos' leaked on 4chan weeks after Jennifer Lawrence scandal
'F*ck it, I quit': KTVA reporter Charlo Greene quits live on air in spectacular fashion
Jennifer Lawrence: Leaked 4Chan sex video branded 'fake' by users
Scotland could still declare independence – even without referendum, says Alex Salmond
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Hilary Mantel 'should be investigated by police' over Margaret Thatcher assassination story, says Lord Bell
Plebgate MP Andrew Mitchell called officer a 'little s**t', claim court documents 'exposing ex-Chief Whip's 'record of abusing police'
Archbishop of Canterbury admits doubts about existence of God
Labour Party conference: Ed Balls to set out plan to freeze child benefit to balance books
iJobs Money & Business
£65000 Per Annum Benefits + bonus: Clearwater People Solutions Ltd: If you are...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree are a global FTSE 250 ...
£20000 - £25000 per annum + OTE £40000: SThree: As a Recruitment Consultant, y...
£20000 - £25000 per annum + OTE £40,000: SThree: SThree Group have been well e...