Yahoo Rallies Shareholders Against Carl Icahn
Yahoo's homepage directs visitors to the Webpage with a large purple button. When visitors arrive, they're greeted with a statement Icahn made in an October 2007 interview with the Wall Street Journal, helpfully presented in huge purple font at the top of the page: "It's hard to understand these technology companies."
As Yahoo's August 1 shareholders' meeting looms, Icahn is pushing for Yahoo to sell its search business to Microsoft and for a new board of directors for the embattled number two search player. Yahoo says it's still open to Microsoft acquiring the entire company, but claims that selling just its search business wouldn't be in the best interests of shareholders.
Using the new Webpage to drive that point home, Yahoo points out that Icahn had previously advised Yahoo not to sell its search business to Microsoft. "When Mr. Icahn began his proxy contest he had no articulated plan for Yahoo! other than a sale of the Company to Microsoft and today he still lacks a strategy that makes sense for Yahoo! Stockholders," according to the Webpage.
In a Thursday letter sent to shareholders, Yahoo CEO Jerry Yang and Chairman Roy Bostock went on the offensive, noting that Icahn bought his stock two months ago for an estimated average cost of less than $25 per share, and is a notoriously short term investor.
"and#91;Icahnand#93; is well-known as a corporate agitator with a short-term approach to his investments. His short-term approach gives Mr. Icahn a strong incentive to strike any deal with Microsoft that enables him to recover his investment and get back his money quickly, even a deal that does not provide full and fair value to you. Is that in the interests of all stockholders? Clearly, it is not," Yang and Bostock wrote.