Support for Yahoo board in the struggle with Icahn

In its fight for shareholder support, Yahoo's board has now received backing from one of the firm's biggest investors. This will help to counter Carl Icahn, the notorious company hunter and major shareholder who, following the failed attempt at a complete buyout of Yahoo, wants to see the company's internet search division taken over by Microsoft.

The New York Times reports that, after weeks of speculation about whether he would support Carl Icahn in the latter's plan to vote the board out of office at the next meeting of shareholders on 1 August, Bill Miller of the Legg Mason equity investment company, which controls 4.4 per cent of the shares, has now taken the board's side. This step is seen as a crucial one in the battle to control the search engine operator and web portal.

Icahn wants to dismiss the present board members and replace them with his supporters in order to force through a deal with Microsoft.

See also:

• Microsoft looks for partners for Yahoo takeover
• Yahoo defends its actions to shareholders
• Yahoo breaks off talks with Microsoft
• Yahoo re-schedules general shareholders meeting for August 1

(trk)