Yahoo re-schedules general shareholders meeting for August 1

Mired in a power struggle, Yahoo has set a new date for the postponed general shareholders meeting. In an announcement to the US Securities and Exchange Commission, Yahoo stated that shareholders would meet on August 1. The company also reaffirmed its opposition to shareholder Carl Icahn's call to replace all of its board members. The general shareholders meeting should already have taken place on July 3, but the struggle with Icahn had led to its indefinite postponement.

The US multi-billionaire has purchased some 4 per cent of Yahoo and wants to completely dissolve the ten-member board of directors and replace them with his own people. His goal is to force the company into a merger with software concern Microsoft. Yahoo management has already turned down a $47.5 billion offer from Microsoft and following the refusal, the offer was withdrawn.

Meanwhile, Icahn told the Wall Street Journal that if he is able to get control of the board, he will call for the resignation of Yahoo boss Jerry Yang. He said that he was convinced that Microsoft longer trusts Yang. He added that, the US software giant would not offer another takeover bid until Yang and the board had been removed.

Icahn is not the only shareholder who is dissatisfied with the conduct of Yahoo's board. Two Detroit pension funds went to court in February to have Microsoft's offer legally reviewed. In their written complaint, they charge that from the outset Yahoo had not been interested in negotiations with Microsoft. This was evident in defence tactics, such as a compensation program for employees.

Still, Yahoo and Microsoft restarted negotiations following the failed takeover attempt. These talks revolved around the idea of a co-operation agreement. A short time later, Microsoft head Steve Ballmer made it clear that a takeover was still an option.

(trk)