Some people simply don’t know when to leave well enough alone. Carl Icahn has gotten approval for the purchase of a boatload of Yahoo stock, totalling about 11% of that company’s worth.
With the total purchases making him in for about 1.5 billion dollars, this guy must really get excited about these ‘bully boy’ tactics he uses. I watched the ‘60 Minutes’ interview with this man, and at the time he did not seem as though he was such a – looking for the socially acceptable word here…. (well, you choose one, they are probably all appropriate). He must have been trying to schmooze Leslie Stahl.
This is definitely going to be a rough ride for the Yahoo founders, as this guy usually gets his way.
The Federal Trade Commission has given activist investor Carl Icahn approval to purchase a large chunk of Yahoo stock, it said on Friday.
The FTC is required under current rules to give its approval to large purchases of stock, and for Carl Icahn, that approval came Friday (PDF available here). Icahn currently owns a little over four percent of Yahoo, valued at around $1 billion USD.
With the additional purchase of stock, which totals about $1.5 billion, Icahn will own close to 11% of Yahoo, which gives him quite a bit of say in the business of the company.
Yahoo is prepping itself for the fight, having already delayed its annual shareholders meeting to later in July. It is also apparently talking to Microsoft about a deal that essentially stops just short of a buyout.
Icahn, long a thorn in many a troubled company’s side, seems to be successful in rallying shareholder discontent over Yahoo’s direction. Including his own slate of directors, as many as 30 people could be vying for positions on Yahoo’s board.
It will be interesting to see where this goes, because as I have noted before, if he installs certain people on the board, and gets Yahoo and Microsoft together, it is a small step to the Icahn-izing of Microsoft as well. I used the Gordon Gekko character from ‘Wall Street’ as reference to Icahn before, but now that I think more about it, it shows more similarity to the Danny DeVito character in ‘Other People’s Money’. Instead of Larry the Liquidator, we have Icahn, the Inquisitor. ( and you remember the tales of the last Inquisitor, Torquemada, don’t you?)
Those who enjoy the misery of others might look forward to this, but it could be catastrophic for many otherwise unaware at this moment.
[tags] Carl Icahn, Yahoo, stock fight, billionaire, Microsoft, shareholder discontent, board of directors, OPM, 60 Minutes interview [/tags]