The Microsoft-Yahoo merger story may not be over yet.
Mr Carl C. Icahn, the billionaire investor and activist shareholder, is considering a proxy fight for seats on the Yahoo board in hopes of pushing the company to restart talks to sell itself to Microsoft, people who have held discussions with him said on Tuesday.
Mr Icahn’s interest comes less than two weeks after Microsoft withdrew a $47.5 billion offer for Yahoo after being rebuffed. The deadline for board nominations is Thursday.
Mr Icahn has told associates that he bought as many as 50 million shares of Yahoo — worth more than $1 billion — in anticipation of pressing for seats on its board. He has also inquired at Microsoft, through various friends, whether he could help bring that com pany back to the negotiating table, these people said. He has received little encouragement, these people said, because Microsoft has insisted that it has “moved on.” As a result, it remains unclear whether Mr Icahn will move forward, these people added.
Many Yahoo shareholders, frustrated at the company for pushing Microsoft away, would appear receptive to a dissident slate of directors. In recent days, Yahoo’s board has received a deluge of letters from Yahoo shareholders criticising the company’s tactics during the negotiations with Microsoft.
But Mr Bill Miller, the portfolio manager at Legg Mason who has said he thought a merger would be a good strategic move, said he was unsure he would support Mr Icahn. Legg Mason owns more than six per cent of Yahoo.
In an interview, Mr Miller said he had no knowledge of Mr Icahn’s plans and would consider any proposals. But he suggested that without clear indications that Microsoft would resume negotiations, he saw little reason to justify the election of new directors