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Yahoo Watch

Yahoo Stock Closed Up 2.25% at $27.75 On the Apparent Assumption that Microsoft is Game
By Maureen O'Gara
Article Rating:
May 20, 2008 02:15 PM EDT
Reads:
 3,044

Between the time corporate raider Carl Icahn notified Yahoo chairman Roy Bostock Thursday morning to expect a proxy fight for control of the company if Yahoo didn’t crawl on its belly to get Microsoft to buy it and Yahoo sent a non-answer back, Yahoo stock closed up 2.25% at $27.75 on the apparent assumption that Microsoft is game – and not overwhelmed by doubt about the wisdom of the whole idea.

Ah, but whether Microsoft, now in the driver’s seat, would return to its last bid of $33 is still another question.

Giving Icahn some support, however, is the “merger arbitrage” hedge fund Paulson & Co, which has amassed about 50 million Yahoo shares – almost as much as Icahn’s 59 million – and threw its support behind Icahn Thursday.

In a statement Paulson said, “We intend to support the Icahn slate but sincerely hope that Yahoo will negotiate an agreement with Microsoft, thereby making a proxy fight unnecessary,” basically reiterating what Icahn said.

Together they currently represent about 7.7% of the company.

None of Yahoo’s other big holders has said anything publicly yet.

Published May 20, 2008 – Reads 3,044
Copyright © 2008 SYS-CON Media, Inc. — All Rights Reserved.
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About Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025.

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