Tuesday, 27 September 2016
Last updated 10 min ago
May 20 2008 | 2:29pm ET
Another hedge fund has thrown its weight behind Carl Icahn’s effort to force Yahoo! Inc. to sell itself to Microsoft.
New York activist shop Third Point has accumulated 5 million Yahoo shares and is backing the billionaire investor’s bid to replace the Sunnyvale, Calif.-based Internet company’s board, Reuters reports. Icahn and his supporters argue that a tie-up with Microsoft is in the best interest of shareholders, and are annoyed that the companies had broken off talks. The two sides said Sunday that they have recommenced negotiations.
Third Point joins fellow New York hedge fund Paulson & Co. in backing Icahn’s bid. Icahn owns a 4.3% stake in Yahoo, Paulson 3.6% and Third Point about 0.36%, though Daniel Loeb’s firm reportedly may double its stake.
Icahn has nominated candidates to fill all 10 of Yahoo’s board seats. The company holds its annual meeting on July 3.