This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Third Point's Loeb Preps Proxy Battle at Yahoo!

NEW YORK ( TheStreet) -- Daniel Loeb is officially fed up with Yahoo!'s (YHOO - Get Report) board.

According to a letter disclosed in a Securities and Exchange Commission filing late Wednesday, the hedge fund manager, whose firm Third Point LLC owns more than 70.5 million Yahoo! shares, has given Yahoo! CEO Scott Thompson a heads-up that he plans to launch a proxy battle to get a fair shake for his slate of four nominees to director posts.

Loeb said in the letter that Yahoo!'s reaction to his plans to nominate four new board members -- Harry Wilson, Michael Wolf, Jeff Zucker and himself -- has been "dismissive" and that he plans file a preliminary proxy statement "within the week."

"[T]he Board's stonewalling, apparent insouciance and decision not to engage with us in a serious manner, has left us no choice but to directly approach our fellow owners with the Shareholder Slate," Loeb wrote.

Loeb argued that Yahoo!'s nominating and corporate governance committee hasn't seriously considered Third Point's slate of candidates, conducting only short interviews and giving no indication of next steps in the evaluation process.

"This approach is particularly nonsensical given the fact that shareholders have been clamoring for change for some time, and I do not believe that even you can realistically imagine that Yahoo!, in its current state of flux, will find four nominees that are as qualified to serve as the Shareholder Slate," he wrote.

Yahoo! shares have floundered as the company has struggled to reinvent itself as a content aggregator while Google (GOOG) gobbles up Internet search traffic market share. The stock closed Wednesday's regular session at $14.63, down 11% in the past year.

Loeb also said in the letter that Third Point is amenable to having Gary Wilson, a former chief financial officer at Marriott International (MAR) and Walt Disney (DIS), remain on the board as chairman for a year following the expiration of current chairman Harry Bostock's term.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
YHOO $33.16 0.61%
AAPL $118.03 -0.71%
FB $105.41 -0.31%
GOOG $748.15 -0.02%
TSLA $229.64 5.22%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs