Thursday, May 15, 2008

Yahoo in the news again

I knew the Yahoo saga wasn't over yet.

In a letter to Yahoo Chairman Roy Bostock, billionaire investor Carl Icahn said he had snapped up 59 million Yahoo shares, worth about $1.5 billion, and was seeking permission from the Securities and Exchange Commission to amass up to $2.5 billion worth of shares. His holdings constitute about 4.3% of the Sunnyvale, Calif., company's stock.

According to the LA Times he wrote:

"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," Icahn wrote. "I and many of your shareholders strongly believe that a combination between Yahoo and Microsoft would form a dynamic company and more importantly would be a force strong enough to compete with Google on the Internet."

The song and dance will be interesting to watch.

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