The pitched battle between billionaire investor Carl Icahn and Yahoo for control of its board could hinge on whether Icahn can convince the company’s two largest institutional investors to vote for his alternate slate of directors. Those two investors are Gordon Crawford of Capital Research and Bill Miller of Legg Mason. As of May 7, they each controlled 16 percent and 6.7 percent of Yahoo stock, respectively. Icahn owns at least 4 percent. That’s more than a quarter of the voting shares between the three of them.
Crawford has reportedly threatened Yahoo that he might throw his support behind Icahn, although he hasn’t done it yet. And that was before Icahn’s Gossip Girl pact with Steve Ballmer to jointly destroy Yahoo.
Did that pact make any difference to change the minds of Crawfod or Mason? Asked by Reuters reporter Ken Li at the Allen Company conference in Sun Valley, Mason replies:
The difficulty with Icahn is he’d have more shareholder support if he would say he wouldn’t sell the company for less than $33.
In other words, put up or shut up. Despite plotting for hours with Steve Ballmer, the only agreement Icahn got out of Microsoft was to come back to the negotiating table to discuss another deal. And why wouldn’t Microsoft talk to a new board charged with selling the company? It could probably get it for a steal, certainly less than the $31 a share it originally offered. And you can forget about that $33 offer it later dangled in front of Yahoo, only to be rejected by Yang & Co.
Mason is basically saying that if Icahn can do the impossible and turn back the clock, he’d vote for Icahn’s board. Otherwise, investors would just be handing Microsoft the company for whatever price it wants. But Microsoft is not going to agree to any new price before the August 1 shareholder meeting.
It sounds like Ichan still has some convincing to do.
These people are pathetic in their own right.
Paragraph 3, you misspelled Crawford. God you guys are sloppy.
Is this about money, different business philosophies or the current Yahoo regime being unable to stomach working with Microsoft?
The entire deal doesn’t make sense to me. It’s like oil and water mixing to put them together. However, Yahoo might not be in the search business soon. To me their deal with Google looks better.
I dont understand also why there are so many problems for this deal
Microsoft and yahoo will lose popularity like that
Nath
http://www.them...rfulcompany.com
Just like my old football team coach would say” Put up or Shut up” OOOWEEE Dam right!
Yahoo’s current board needs to go. As a Yahoo shareholder, I want Icahn in and deal with MS…I don’t care if it’s for $29 a share. I just want something. Nevertheless, the current Yahoo board and executives are a joke. Please get rid of Yang, Sue Decker altogether. Companies have replaced their executive leadership for far less bad publicity as this. We need a clean slate at the top to ever overcome this mess.
As usual in these stories: today are fighting, tomorrow will be in love!
While extremely influential, Gordon Crawford controls 6.5% of yahoo not 16% as stated. You are adding the ownership of two entirely separate entities: Capital World Investors and Capital Research Global Investors.
Icahn has done his part. It is now turn of the investors to elect this new board and restart negotiation.
Icahn’s broken everything he’s touched. Remember the TWA Esop?
Will this bantering ever really end? … Probably not until some sort of a deal is made. Overall, to take the side of Yang – which I rarely do – he’s only been in office as the CEO since January. Six months is not necessarily a significant amount of time to prove yourself. Either Yahoo has something up their sleeve (which I doubt), or the tensions between investors and Yahoo will only increase…. http://www.read...ex.php?RTA=web2
i guess i am missing how that quote turns into “put up or shut up.” it seems like a pretty loose interpretation. what exactly would he be “putting” up?
also in that article, yang complains: “I think that the destabilizing by Microsoft has become more and more intentional. I am not happy about it” – yang, that destabilizing is because of YOU! man, what a poon.
Icahn seems stupid or desperate. He must be taking a beating in some of his other investments and needs to dump his Yahoo shares. There is no way that Yahoo two biggest investors will swing the broad his way, which would destroy Yahoo management, with no guaranteed pay out at value they consider reasonable. Icahn/Microsoft should put up or shut up.
Sloppiest writing I’ve ever seen here. You refer to Bill Miller of Legg Mason as “Mason” throughout your text. Come on.
Here’s a interesting and different angle on this:
http://www.tech...soft-yahoo.html
Comments welcome.
almewinn@6: Let me guess, you’re a BILLIONAIRE INVESTOR! Your attention to detail and business acumen is inspiring.
Referring to Bill Miller as “Mason” really makes you look like an idiot. Do you guys have a proofreader on staff?
What the hell does Gordo or Bill Miller know….Bill Miller had the acumen to be long Countrywide, Bear Stearns, HouseValues, and everything else toxic in 2007. The guy is finished.
Neither fund manager is in the Forbes 400, but Yang, Ballmer, and Icahn are. So the fund managers should shut their traps. They’re sheep anyway. What the hell do the know how the 3 billionaires are going to play their cards.
If it weren’t for Ballmer and Icahn, Gordo and Miller would have just kept their mouths shut and went along with Yahoo like every other institution.
Basically, it’s not Gordo’s or Miller’s money for the most part. For the Big 3, they have substantial personal stakes in the outcome.
The ever shallow and coldly calculating Carl Icahn, should remind us all of Rod Steiger in “The Pawnbroker”.
I know that Steve Balmer is someone’s bitch, but it’s hard to figure out who.
Out of all this mess,one guy has been left out and that’s the CEO,Mr.Yang.
I really feel pitty on him.
For the past few months,Yahoo! seems more of the shareholder’s dynasty rather than the originator(yang)’s company.
Plz stop tearing yang’s clothes and let him spend his mind to grow his company..
Erick,
I saw a report somewhere that a text ad patent owned by one of the companies that yahoo bought is at stake and the real reason why MS wants to buy Yahoo..
The saga continues! Both of them look desperate! Microsoft sees buying Yahoo as the only option – forgetting about, oh, innovation?