Yahoo (NSDQ: YHOO) has announced a settlement with Carl Icahn that will see Icahn himself elected to the company's board at the upcoming meeting. Following the August 1 shareholder meeting, the board will then be expanded to 11, with the extra two board members appointed by the board from a list recommended by Icahn. All told, Icahn will control 3 of the 11 seats.
Icahn's statement from the release: "I am very pleased that this settlement will allow me to work in partnership with Yahoo!'s Board and management team to help the Company achieve its full potential. While I continue to believe that the sale of the whole Company or the sale of its Search business in the right transaction must be given full consideration, I share the view that Yahoo!'s valuable collection of assets positions it well to continue expanding its online leadership and enhancing returns to stockholders. I believe this is a good outcome and that we will have a strong working relationship going forward. Additionally, I am happy that the board has agreed in the settlement agreement that any meaningful transaction, including the strategy in dealing with that transaction, will be fully discussed with the entire board before any final decision is made."
More to come
By Joseph Weisenthal