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Yahoo may face proxy fight from Carl Icahn

Dawn Kawamoto CNET News

Published: 15 May 2008 08:28 BST

Billionaire investor Carl Icahn is planning to wage a proxy fight against Yahoo, in a move that could ultimately kick out Yahoo's entire board, according to a Reuters report on Wednesday.

Icahn has received commitments from at least 12 potential board members to run against some or all of Yahoo's 10 board seats, which are all up for re-election at the company's 3 July annual shareholders meeting, according to Reuters.

Icahn may unveil his plans as early as Wednesday night, according to the report. The deadline for Yahoo or any shareholder to name a dissident slate is by the end of Thursday.

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Shares of Yahoo on Wednesday closed up 2.18 percent to $27.14 a share, spurred by expectations Icahn would move forward on a proxy fight, potentially paving the way for a sale of the internet search pioneer.

Less than two weeks ago, Microsoft withdrew its sweetened cash-stock offer for Yahoo, valued at $33 a share, after a three-month lag in which its initial offer of $31 a share remained virtually comatose.

After Microsoft withdrew its offer on 3 May, Yahoo's stock took a hammering during the next trading day and has since bounced between a low of $24.20 to as high as $27.36 per share during intraday trading on Wednesday.

Credit: Report: Carl Icahn will launch proxy fight against Yahoo from CNET News