Yahoo! Board of Directors to Evaluate Unsolicited Proposal From Microsoft
Posted on | February 2, 2008 |
After being served with an unsolicited $44.6 billion takeover bid from Microsoft, Yahoo has reacted cautiously. In a press release early Friday, Yahoo said it will “evaluate this proposal carefully and promptly in the context of Yahoo!’s strategic plans and pursue the best course of action to maximize long-term value for shareholders.”
Microsoft said to Yahoo board that, depending on how Yahoo responds, it “reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our
proposal.”
If Yahoo board come on an offensive mode , Microsoft could try a number of strategies,e.g. Offering them seeking to nominate a rival slate of directors at Yahoo. Yahoo may be vulnerable on that front because it does not have what is known as a “staggered board.” That means its directors are all up for re-election at once.
In normal circumstances, Yahoo’s bylaws also make it relatively easy to push directors out: If a given director fails to get a majority of shareholder votes in favor of being re-elected, the board “must consider that director’s resignation,” Yahoo said in last year’s proxy statement to shareholders.
The date to watch here is March 13: That’s the last day to nominate a competing director at Yahoo.
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One Response to “Yahoo! Board of Directors to Evaluate Unsolicited Proposal From Microsoft”
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Since 7th June 2007
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February 22nd, 2008 @ 9:53 am
i think its in the interest of major shareholders in Yahoo ton either accept the Microsoft bid