Yahoo! reaches settlement with Icahn

Font Size

Print

Feedback

Email

Discuss

Related Articles

American Express to cut 7,000 jobs, save $1.8 blnExxon third-quarter profit up 58%‘Citi strong enough to survive financial crisis’‘Citi strong enough to survive financial crisis’

Internet major Yahoo! on Monday said it has reached a settlement with Carl Icahn and has appointed him to the company's board, averting a showdown with the billionaire investor ahead of shareholders meeting next month.

Icahn, who owns nearly 5 per cent stake in Yahoo!, had threatened to oust the current board following the collapse of the takeover talks between the internet major and Microsoft.

Apart from Icahn, Yahoo! would also appoint two other members taking the total board strength to 11.

In a statement, Yahoo! said the two new people would be selected from the eight remaining members of the Icahn slate of nominees and Jonathan Miller who is currently a partner in Velocity Interactive Group and former Chairman and CEO of AOL.

"We are gratified to have reached this agreement, which serves the best interests of all Yahoo! stockholders. We look forward to working productively with Carl and the new members of the Board on continuing to improve the firm's performance and enhancing stockholder value," Yahoo! Chairman Roy Bostock said.

Under the settlement pact, eight members of Yahoo!'s current board including chief executive Jerry Yang would stand for re-election at the annual meeting to be held on August 1.

Commenting on the agreement, Jerry Yang who is also the co-founder of the company said, "This agreement will not only allow Yahoo! to put the distraction of the proxy contest behind us, it will allow the company to continue pursuing its strategy of being the starting point for internet users and a must buy for advertisers."