Yahoo rejects “take-it-or-leave-it’ restructuring plan cooked up by Icahn and Microsoft

The Yahoo drama just heated up yet again. Shortly after midnight EDT, Yahoo released “confirmation” that it had rejected a joint proposal from Microsoft and Carl Icahn proposing a “complex restructuring” of the company that would leave Microsoft owning Yahoo’s search business and immediately replace the current Yahoo board with Icahn’s proposed slate of directors.

The plan was evidently given Friday evening to Yahoo’s board, which “was given less than 24 hours to accept the proposal, the fundamental terms of which Microsoft and Mr. Icahn made clear they were unwilling to negotiate.”

Yahoo chairman Roy Bostock declared in a statement that,

“This odd and opportunistic alliance of Microsoft and Carl Icahn has anything but the interests of Yahoo!’s stockholders in mind. 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. Yahoo’s Board of Directors will not allow that to happen. Yahoo!’s Board remains open to any transaction that delivers full value to our stockholders – we just do not believe such a transaction should be dictated by Microsoft and a single short-term investor.”

 

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