Yahoo on Tuesday set its annual shareholder meeting on for August 1, as it braced for a showdown with billionaire activist investor Carl Icahn, who is mounting a proxy fight for control of Yahoo.
Earlier, The Wall Street Journal reported that Icahn
would seek to remove Jerry Yang as Yahoo chief
executive, citing the company's failure, so far, to
reach a merger or partnership deal with Microsoft.
Icahn had proposed an alternate slate of directors for
Yahoo's board, but, until now, had not directly targeted
Yang over the breakdown in talks a month ago in
Microsoft's merger offer, then valued at about $47.5
Yahoo fired back in a statement: "Yahoo's board of
directors, including Jerry Yang, has been crystal clear
that it would consider any proposal by Microsoft that
was in the best interests of its shareholders."
Yahoo noted it has held extensive talks with Microsoft
for the last several months, culminating in Microsoft's
decision not to pursue a deal.
Icahn cited details from court documents related to a
shareholder suit that were unsealed on Monday.
The documents showed how Yahoo had taken steps to rebuff
a Microsoft takeover bid months before the software
maker made its offer public on February 1.
The lawsuit argued that Yahoo had taken aggressive steps
to block a deal, including the adoption of a costly plan
to retain employees, leading up to a breakdown in talks