Internet search engine Yahoo!, facing a revolt by disgruntled shareholders led by activist Carl Icahn who has threatend to oust its full board of directors to pursue a deal with Microsoft, has announced the postponement of its its annual meeting for a second time, even as it announced Edward Kozel, a board member, was resigning.
Yahoo! had earlier postponed its annual meeting to 3 July, seeking time to consider Microsoft's proposal for a takeover, which it snubbed for undervaluing the companythat led to the software giant abandoning its enhanced $33-a-share bid earlier on 3 May, before making a new proposal on 18 May for a partial acquisition - of its search business.
The second postponement to an uspcified date in july follows Icahn seeking regulatory approval to acquire Yahoo! stock worth $2.5 billion (See: Icahn seeks FTC clearance to acquire $2.5 billion worth Yahoo! stock; threatens proxy fight) in addition to the 59 million he already owns, in a bid to replace the entire board of directors, mountina pressure ob CEO Jerry YAng to find a suitable replacement for the microsoft deal.
The entire board of Yahoo! is due to retire. Icahn has proposed full sate of 10 nominees including himself and Frank Biondi Jr, former CEO of Viacom.Yahoo! said
two other shareholders had proposed oferrin g their candidature, while a third wanted to offer a slate of nine people. According o the search firm these shareholders did not confornm to its bylaws.
Yahoo! also said today that its Kozel who had resigneed had planned to resign in February, but stayed back during the acquisition talks with Microsoft.