Yahoo, Icahn Declare Cease-fire in Proxy War

by admin July 22, 2008 at 5:27 pm

Agreement gives Icahn a seat on Yahoo’s board, casts doubt on likelihood of Microsoft deal.

After two months of bitter public sparring and mutual accusations, Yahoo has made peace with Carl Icahn, the billionaire investor who has been lobbying to take control of the company’s board of directors and force a transaction with Microsoft.

Yahoo (NASDAQ: YHOO) today announced a settlement with Icahn, who said he will give up his proxy fight to oust all nine of Yahoo’s incumbent board members at the company’s annual meeting Aug. 1.

Under the agreement, Icahn himself will take a seat on Yahoo’s board, which will be expanded to 11 seats following the meeting to accommodate two members of Icahn’s recommendation.

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