Big Yahoo shareholder Dan Loeb, the managing partner of a hedge fund called Third Point, is waging a proxy war against Yahoo.
He wants to fire a bunch of its directors and install new ones.
For a while it looked like the proxy war might be avoided.
As an olive branch, Yahoo offered Loeb two board seats: one of his choosing, and one that was acceptable to him and Yahoo’s current board.
Loeb wanted one of those two new board members to be himself.
In a letter to shareholders, Yahoo just announced that Loeb will not be given a seat.
The board continues to believe that Mr. Loeb himself does not bring the relevant skill set and experience to the board, particularly in comparison to the candidates selected by the board. In addition, we believe that, based on the specific qualifications of Third Point’s nominees relative to Yahoo!’s business and opportunities, the candidates nominated by the board’s Nominating and Governance Committee are significantly superior to those proposed by Third Point. Nevertheless, we want to emphasise that we remain committed to an open dialogue with all our shareholders and to working in a constructive manner with Third Point.
Loeb likes to write letters about how awful he thinks Yahoo and its board is doing, so expect one of those soon.
In the meantime, other shareholders, including activist Eric Jackson, are already complaining. Specifically, Jackson believes its ridiculous to say Loeb is less qualified than some of the people already sitting on Yahoo’s board.
“Why is Dan Loeb’s “skill-set” for $YHOO’s board inferior to Sue James, President of the Tri-Valley Animal Rescue?”
“Why is Dan Loeb’s “skill-set” for $YHOO’s board inferior to David Kenny, recently fired by $AKAM after a failed one year’s tenure?”