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Yahoo Appoints Three Independent Directors, None Proposed by Activist Intestor Daniel Loeb

March 26, 2012 | About:
Dheeraj Grover

Dheeraj Grover

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Yahoo Inc. (YHOO) has appointed three new independent directors as it prepares for a proxy fight with activist hedge fund investor Daniel Loeb: John D. Hayes, chief marketing officer of American Express; Peter Liguori, former chief operating officer of Discovery Communications, and Thomas J. McInerney, the outgoing chief financial officer of IAC/InterActiveCorp, will commence their tenure as directors effective April 5, Yahoo said in a statement on Sunday.

The appointments come as Loeb's hedge fund Third Point, which has a 5.8 percent stake in Yahoo, has sharply criticized the Internet company's strategy and launched a campaign to install four directors at its board.

Yahoo said its board had offered to propose Harry Wilson, one of Third Point's four nominees, and a second person mutually acceptable to both Yahoo and Third Point - outside of its three other nominees - to join the board in order to avoid a proxy fight.

Loeb, who is seeking a board seat for himself, rejected this proposal, according to the Yahoo statement.

"The board believed that there is value in avoiding the cost and distraction that inevitably accompanies a proxy fight, and determined that this proposal was in the best interest of all of its shareholders to avoid that expenditure of resources," Yahoo said in a statement.

While the board remains open to hearing Third Point's ideas, it has determined that appointing Loeb to the board is not in the best interest of the company and its shareholders, Yahoo said.

Here is the link to the full article:

http://finance.yahoo.com/news/yahoo-names-three-independent-directors-220007300.html

About the author:

Dheeraj Grover
I am an individual investor with deep interest in the field of value investing. My ideas and thinking is inspired by highly respected value investors like Ben Graham, Warren Buffett, Walter Schloss, Bill Ruane and Tweedy Browne

Rating: 3.5/5 (8 votes)

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