Daniel Loeb’s $9 billion hedge fund, Third Point, the largest outside shareholder of Yahoo! Inc., says it will push on with a proxy fight to install its own directors on the internet company’s board.
Yahoo appointed three new independent directors to its board—Peter Liguori, former Fox Broadcasting Network chairman; John Hayes, American Express chief marketing officer; and Thomas McInerney, who is leaving as chief financial officer of IAC/InterActiveCorp—after failing to reach a compromise with the hedge fund.
Third Point had pushed for the appointment of its own slate of four directors, including Loeb. Yahoo said in a statement it had offered to add one of Third Point’s four nominees, Harry Wilson, and another member agreed to by both sides but that Loeb had rejected the proposal.
Third Point, which owns about 5.8% of Yahoo, said in a statement it was “disappointed” by Yahoo’s move: “Third Point offered several significant compromises to strike a deal and avoid a proxy contest. Today, the board has shown yet again that they are unable to execute deals that are in the company's best interests.”
Third Point says it will seek shareholder votes on its own slate of directors during this year’s Yahoo annual meeting.